Question 1

A ban on billboards advertising smokeless tobacco within 1,000 feet of a school is unconstitutionally overbroad.

Accepted Answer

The Supreme Court has held that commercial speech, including advertising, is entitled to some First Amendment protection. However, the government may regulate commercial speech if it meets certain criteria, including being narrowly tailored to serve a significant government interest. A ban on smokeless tobacco billboards within 1,000 feet of a school may be found to be overbroad because it restricts more speech than is necessary to achieve the government's interest in protecting children from tobacco advertising.

Question 2

Bloggers are forbidden from endorsing products.

Accepted Answer

Bloggers can endorse products, but they must disclose any financial relationships or sponsored content in accordance with advertising guidelines and laws.

Question 3

Congress has banned cigarette advertising after determining smoking is a leading cause of preventable deaths.

Accepted Answer

Congress has not banned cigarette advertising entirely, but there are significant restrictions on how and where tobacco products can be advertised, such as bans on television and radio ads.

Question 4

Commercial speech is deceptive if a stupid, ignorant, and unreasonable person would be deceived.

Accepted Answer

Commercial speech is considered deceptive if it has the potential to deceive a reasonable person, not based on the perceptions of someone who is considered stupid, ignorant, and unreasonable.

Question 5

The Supreme Court ruled in Sorrell v. IMS Health Inc. that drug prescription data is protected commercial speech that pharmaceutical companies may use to market drugs to doctors.

Accepted Answer

The statement is true, as confirmed by the Supreme Court decision in Sorrell v. IMS Health Inc.

Question 6

One of the main goals of the Family Smoking Prevention and Tobacco Control Act Smoking Act of 2009 was to reduce smoking by youth.

Accepted Answer

The Family Smoking Prevention and Tobacco Control Act of 2009 includes provisions aimed at reducing smoking by youth, such as requiring larger and more prominent warning labels on cigarette packages, restricting the marketing of tobacco products to children and teens, and prohibiting the sale of flavored cigarettes that might appeal to young people.

Question 7

The Family Smoking Prevention and Tobacco Control Act authorized the Food and Drug Administration-not the Federal Trade Commission-to control the manufacturing, marketing, advertising, and labeling of tobacco products because the FDA has the scientific expertise to regulate addictive drugs, such as nicotine, and other cancer-causing ingredients.

Accepted Answer

The Family Smoking Prevention and Tobacco Control Act did authorize the Food and Drug Administration to control the manufacturing, marketing, advertising, and labeling of tobacco products because the FDA has the scientific expertise to regulate addictive drugs, such as nicotine, and other cancer-causing ingredients.

Question 8

Lax FTC regulations under the Children's Online Privacy Protection Act allow web sites to collect names, addresses, and phone numbers from children as young as 12 without parental permission.

Accepted Answer

According to the Children's Online Privacy Protection Act (COPPA), web sites are required to obtain verifiable parental consent before collecting personal information from children under the age of 13. They cannot collect names, addresses, and phone numbers without parental permission.

Question 9

Under FTC regulations, advertisers can track and record a consumer's web browsing and purchases only if the consumer "opts in" to the tracking.

Accepted Answer

Under FTC regulations, advertisers can track and record a consumer's web browsing and purchases without the consumer opting in, but they must provide a notice of their tracking practices and an option to opt-out.

Question 10

The FTC requires sponsors of "native advertisements" to make its sponsorship of content clear and obvious to the audience, recommending that the word "advertisement" be featured prominently.

Accepted Answer

The FTC does require sponsors of "native advertisements" to make its sponsorship of content clear and obvious to the audience, recommending that the word "advertisement" be featured prominently.

Question 11

After a 2012 settlement with the FTC over allegations that Facebook was unfair and deceptive in its privacy practices, Facebook continuously violated the order, resulting in a $5 billion civil penalty in 2019, the largest ever issued by the FTC.

Accepted Answer

Facebook did violate the 2012 settlement with the FTC and was fined a $5 billion civil penalty in 2019, the largest ever issued by the FTC.

Question 12

In response to spikes in e-cigarette use among high school-age children, the FTC ordered vaping companies, such as Juul, to turn over information about how they market their e-cigarettes.

Accepted Answer

The statement is true. The FTC did order vaping companies, including Juul, to provide information about their marketing practices in response to the increase in e-cigarette use among high school students.

Question 13

Endorsement disclosures made by social media influencers on live streams should be repeated regularly so they are not missed by people who do not watch the whole thing.

Accepted Answer

Endorsement disclosures should be repeated regularly to ensure that they are seen by viewers who may only tune in for part of the live stream. This is important to ensure that all viewers are aware of any potential advertising or sponsored content.

Question 14

The FTC can halt-through the use of consent decrees-deceptive ads that violate native advertising and sponsorship guidelines.

Accepted Answer

This is true, as the FTC has the power to enforce guidelines and regulations surrounding native advertising and sponsorship, and can use consent decrees to stop deceptive advertising practices.

Question 15

It does not violate the Consumer Review Fairness Act for companies to include provisions in their contracts that bar customers from posting negative online reviews.

Accepted Answer

The Consumer Review Fairness Act explicitly prohibits companies from using contracts to prevent customers from posting negative reviews. Such provisions are considered void and unenforceable under the law.

Question 16

The FTC has the authority to order businesses to remove provisions in their contracts that bar customers from posting negative online reviews and that require businesses to notify current customers that the provisions are not enforceable.

Accepted Answer

The FTC (Federal Trade Commission) has the authority to order businesses to remove provisions in their contracts that restrict customers from posting negative online reviews and require businesses to notify current customers that the provisions are not enforceable. This is according to the Consumer Review Fairness Act, which was signed into law on December 14, 2016.

Question 17

The 1976 case in which the U.S. Supreme Court ruled that pharmacy advertisements conveyed constitutionally protected information of value to consumers:

Accepted Answer

Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council is the case in which the U.S. Supreme Court ruled that pharmacy advertisements conveyed constitutionally protected information of value to consumers.

Question 18

Although commercial advertising now has constitutional status, the U.S. Supreme Court has ruled that advertising may be subject to:

Accepted Answer

The U.S. Supreme Court recognizes that advertising has constitutional protection, but it has also acknowledged that certain limits can be placed on advertising. These limits include prior restraints, prohibitions on false or misleading advertising, and requirements that clarifying messages be included in ads. Therefore, option D, which includes all of the above, is the best choice.

Question 19

A presumption against the constitutionality of prior restraints is fundamental to First Amendment law. Yet prior restraints are acceptable to the courts where:

Accepted Answer

Prior restraints are generally viewed unfavorably under the First Amendment, but courts have made exceptions in cases where publication could endanger national security, where material is deemed obscene, or where advertising is found to be misleading. These exceptions are based on the principle that certain types of speech or publication can have harmful consequences that justify preemptive legal action.

Question 20

In commercial speech cases, the U.S. Supreme Court employs:

Accepted Answer

The U.S. Supreme Court employs the four-part Central Hudson test in commercial speech cases.

Quiz 8: Commercial Speech