UT Knoxville ADVT 250 - Final Exam Study Guide (5 pages)

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Final Exam Study Guide

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Final Exam Study Guide


This study guide covers everything you will need to know about advertising and the law. It covers trademarks, copyrights, the first amendment, and how advertising is used as a business tool. Lectures 15-17

Study Guide
University of Tennessee
Advt 250 - Advertising Principles
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ADVT 250 1st Edition Exam 4 Study Guide Lectures 15 17 Lecture 15 November 6th This is the information you need to know about trademarks and copyrights Trademark Issues 1 Generic Usage You can lose your trade mark if your TM becomes synonymous with the product category Copyrights 1 Copyright Protection of the expression of an idea You cannot copyright an idea 2 What can be copyrighted Photos ads writing movies musical compositions musical recordings taglines websites etc Protection is given to owner for life 70 years Then it becomes public domain 3 Using copyrighted materials Must get permission from owner And you often must pay royalty to owner An exception is a parody of satire 4 Commercial Appropriation Using someone s image or likeness for commercial gain without that person s permission or compensation Usually inappropriate commercial appropriation is what gets you in trouble Filming in Public for a commercial Celebrity look a likes sound a likes Getting signed release forms Notifications This is what you need to know about the various organizations that regulate different forms of advertising Federal Trade Commission and Advertising 1 FTC Established by Congress to ensure a fair marketplace for business 1914 Lead to the elimination of Unfair Methods of Competition 2 Wheeler Lea Amendment 1938 False or Misleading advertising is Unfair method of competition and under jurisdiction of the FTC 3 How to judge if an ad is misleading Is there a representation omission or practice that is likely to mislead a reasonable consumer It is negative material 4 Representation Omission or Practice Expressed or Implied Claims if you say something in a matter of fact way studies have shown 4 out of 5 people etc Undisclosed Information Ineffectively Disclosed Information Disguised Ads 5 Puffery An exception doesn t actually make a false claim or mislead Ex Coke is it GE Brings good things to life Gillette The best a man can get 6 Reasonable Consumer Consumer acting reasonably in the situation is it going to mislead a reasonable person There are different standards for kids etc 7 Net Impression Standard The overall tendency of the ad to mislead Everything in the ad could be true but put together in a way that leads to confusion or misrepresentation 8 How to avoid problems Clear and conspicuous disclosure That s basically all it takes Be honest and very very clear 9 FTC Remedies Consent Decree lay out ways to avoid the same problems that they encounter often To avoid this in the future do this this and this No guilt is placed Cease and Desist Order if it gets to this stage then you will have to stop running the ad Corrective Advertising You have to go back and tell people you lied 10 Who is liable FTC can hold both the marketer and the ad agency responsible for false or misleading advertising FDA 1 Food and Drug Administration 1938 Regulates advertising for food drugs and therapeutic devices 2 Wants to promote better consumer decision making through affirmative disclosure Very concerned about consumer confusion Clear and conspicuous disclosure Other regulatory agencies and advertising 1 SEC Securities and Exchange Commission Financial advertising 2 FCC Federal communications commission Broadcast Advertising Lecture 16 November 11th These are the main points you need to understand about the relationship between advertising and the first amendment 1 The first amendment Amends the U S Constitution and is the first of the Bill of Rights 2 Congress shall make no law respecting an establishment of religion or prohibiting the free exercise of thereof or abridging the freedom of speech or the press or the right of the people peaceably to assemble and to petition the Government for a redress of grievances Restricts the government about the kind of laws they can make it s important not to be a theocracy because people who disagree are often imprisoned or killed people flee to the U S because of religious persecution in other countries we have the right to talk about illegal subjects media is often thought of as the 4th estate we are able to protest helps speed up change However you have to get a license for such demonstrations 3 But the 1st amendment does NOT say anything about Advertising Two traditions of reading the constitution Absolutist only pay attention to the ACTUAL words the constitution says Spirit of the Document Interprets the constitution because there is no way the founding fathers could predict how our society would be today 4 Commercial Speech Speech that merely proposes a commercial transaction Not all advertising is Commercial Speech Not all commercial speech is advertising 5 Three Tiers of Speech Protections Political Artistic and Cultural Expression Commercial Speech Libel Slander Obscenity Fighting Words 6 Understanding the Process Laws are being challenged in light of the First Amendment Court rules on whether the law is allowable in light of the constitution Supreme courts is the last stop 7 How does the court evaluate laws restricting commercial speech Central Hudson Test will be used 8 Central Hudson Test Process Does the restriction concern lawful and non misleading commercial speech Is there a substantial government interest in restricting the commercial speech Does the restriction directly advance the asserted government interest Is the restriction no more extensive than necessary to address the problem 9 Areas of Concern Vice Products Gambling Liquor Cigarettes etc Controversial Services Abortion Services 10 Composition of the Court Matters The political leadings of individual Court members will impact commercial speech rights Court justices are appointed by the President and approved by congress Lecture 17 November 13th These are the main points you need to understand about how advertising is used as a business tool for both private businesses and for politicians 1 Common Area of Criticism offensiveness some people say their offended by certain types of advertising women are more offended conservative women are even more offended offensive products offensive executions stereotypes sexuality nudity humor insulting intelligence 2 Generic Vs Specific people tend to report higher levels of offense at advertising when talking in generalities rather than specifics 3 Advertising to Children Children are a special audience They can understand different things at different ages Can t always rely on parents to mediate Children need to learn how to be consumers and responsible

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