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ERIC Number: ED149399
Record Type: Non-Journal
Publication Date: 1978
Pages: 18
Abstractor: N/A
Deceptive Business Practices: Federal Regulations.
Rohrer, Daniel Morgan
Federal regulations to prevent deceptive advertising seek to balance the advertiser's freedom of speech with protection of the consumer. This paper discusses what the Federal Trade Commission (FTC) has done to regulate advertising and evaluates the adequacy of its controls. The commission uses cease-and-desist orders, affirmative disclosure, corrective advertising, and advertisement substantiation requirements as its advertising controls; a review of court cases involving the FTC and advertisers shows that the FTC has broad latitude in determining what advertising is deceptive, and the courts usually have upheld the commission's decisions. This special relationship between the FTC and the courts is emphasized by the facts that the Federal Communications Commission refers to the FTC most of the questionable broadcast advertising it finds and that the National Association of Broadcasters has developed self-regulatory advertising codes for radio and television. The paper notes that no definitive steps have been taken against "psychological" advertising but concludes that, in view of the work being done at the national/federal level, little more can reasonably be expected for further control of false and deceptive advertising. (RL)
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A