Answer to Question 1
b
Answer to Question 2
The FTC's policy regarding deceptive advertising includes three elements:
1 . Misleading. There must be a representation, omission, or a practice that is likely to mislead the consumers. A misrepresentation is defined by the FTC as an express or implied statement contrary to fact. A misleading omission is said to occur when qualifying information necessary to prevent a practice, claim, representation, or reasonable expectation or belief from being misleading is not disclosed.
2 . Reasonable consumer. The act or practice must be considered from the perspective of the reasonable consumer.. The FTC's test of reasonableness is based on the consumer's interpretation or reaction to an advertisement, meaning the FTC determines the effect of the advertising practice on reasonable members of the group to which the advertising is targeted.
3 . Material. The representation, omission, or practice must involve information that is important to consumers and that is likely to influence their choice or conduct regarding a product.
Unlike deception, a finding of unfairness to consumers may go beyond questions of fact and relate merely to public values. Unfair advertising is defined as an act or practice that causes or is likely to cause substantial injury to consumers, the injury is not reasonably avoidable, and is not outweighed by benefits of advertising. In contrast to deception, an unfair advertisement does not have to be misleading.
An example of a deceptive advertisement might be one that claims consumers can lose an unreasonable amount of weight in a short period of time. An example of an unfair advertisement that was given in the text is one company's use of Spider-Man vitamin advertising because such advertising might be capable of inducing children to take excessive and dangerous amounts of vitamins.
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