Every day we are bombarded with advertising messages trying to persuade us to purchase a product. We are usually a little skeptical when we see an ad because we know the advertiser is trying to sell us something. We scrutinize the ad’s claims more than we would if a friend was touting the same product. We know the advertiser may be exaggerating the benefits of the product, but we also assume they are not being purposely deceptive. However, many advertisers get into legal trouble for making false claims. In addition, we are more likely to be misled if we are unaware that we are viewing an ad, which is why the Federal Trade Commission has created new rules for social media endorsements. This week’s assignment explores these topics in more detail.
Read the following complaint:
- Question 1: What were the different ways that Tapjoy was deceiving consumers? (3-5 sentences)
- Question 2: How do third-party advertisers play a role with Tapjoy’s deceptive advertising? (3-5 sentences)
- Question 3: What does Tapjoy have to do as part of the settlement? (3-5 sentences)
Read the following brochure:
- Question 4: Explain two different types of financial connections that require disclosures (6-8 sentences)
- Question 5: What are three rules about how to disclose?
- Question 6: What are the three rules listed under “What Else to Know”?
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