Author Question: A customer searches for air conditioners online, and finds other advertisements from well-known air ... (Read 42 times)

BRWH · **on:** Jun 29, 2018

A customer searches for air conditioners online, and finds other advertisements from well-known air conditioning brands quoting the prices of their products. This is an example of search engine optimization.
a. True
b. False
Indicate whether the statement is true or false

Question 2

What are the four types of rulings that the FTC might enact in response to claims of unfairness or deception in an advertisement? Name and briefly define them, beginning with the most lenient and moving on to the strongest response.

Cheesycrackers · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

False

Answer to Question 2

The FTC has four options when it responds to claims of unfairness or deception in an advertisement:
consent order, cease and desist order, affirmative disclosure, and corrective advertisement.

A consent order allows an advertiser to agree to stop running a questionable ad without having to admit guilt. It is the simplest and least serious of responses that the FTC can enact.

A cease-and-desist order requires that the advertiser stop running the questionable ad, usually within 30 days so a hearing can be held to determine whether it is truly deceptive or unfair. If a product may have a direct effect on consumer's health or safety, an immediate cease-and-desist order can be enacted.

An affirmative disclosure requires that the advertiser add important information that had been missing from previous ads, information that might cause consumers to make false assumptions about the product.

An order for corrective advertising requires that the advertiser run new ads that clarify misleading claims or that retract erroneous information that the consumer has been led to believe as true. This is the strongest and most extensive response that the FTC can enact.