1. What are the three basic principles of advertising law?

2. An online store website says, "Brightly colored socks! Directly below in a slightly smaller font, it says, "Not all colors available in all sizes." A customer wants purple socks in size XL, but XL only includes three color choices and no purple. Was the disclosure adequate? Why or why not?

3. For each of the following examples, state whether the disclosure is adequate to avoid deceptive advertising:

1. Claim: Genuine Italian leather. Disclosure: Leather not from Italy.
2. Claim: 2 carat gems. Disclosure: Actual weight 1.9 to 2.1 carats.
3. Claim: Bulletproof glass. Disclosure: Won't stop a bullet.
4. Claim: Battery lasts up to 10 hours. Disclosure: Depending on usage and temperature.

4. An online store website says, "30-day money-back guarantee." In small print at the bottom of the page is a link labeled "Terms of Use." Users who click on the link are shown a long page of text in small font. The fourth term of use is that only unopened items in their original packaging are eligible for a refund and that the item must be received by the company within 30 days from when the order was placed. Is this disclosure adequate? Why or why not?

5. A person is shopping in an online store. The store's home page says "FREE SHIPPING" at the top. The user selects an item for purchase and adds it to her "shopping cart." When she goes to check out, the payment page contains the following disclosure: "Free shipping only available on purchases weighing 50 pounds or less unless the total purchase is more than $500." Is this disclosure adequate? Why or why not?

6. What is native advertising? Explain why it's considered deceptive.

7. A company creates a blog called Dad's Survival Guide. The blog looks like it is written by a father offering suggestions on how to teach kids how to ride a bike. The guide sometimes recommends bikes and other gear made by the company and it's the company's marketing department that actually writes the blog. Does a disclosure need to be included?

8. A shoe manufacturer pays a popular website to feature an article "10 Best Pairs of Celebrity Shoes." The article is just 10 photographs of celebrities wearing shoes. Half the photos feature the manufacturer's shoes. Does a disclosure need to be included?

9. A store wants to offer a sale on TV sets. The manufacturer list price for the TV is $1,500, but the store normally sells the TV for $1,200. The manager lowers the price to $1,000 with an advertisement that says, "$500 off!" Is this deceptive?

10. A popular product is available on Amazon and Walmart for $50. Local specialty stores in big cities sell the same product for $100. Can Target advertise the product online by saying "$100 elsewhere but only $50 at Target," or is this deceptive?

Answer rating: 100% (QA)

1 The three basic principles of advertising law are truthfulness substantiation and fairness 2 The disclosure regarding the availability of colors for ... View the full answer