If a Business Files a Complaint with the National Advertising

question 70

Multiple Choice

If a business files a complaint with the National Advertising Division (NAD) of the Council of Better Business Bureaus claiming that one of its competitors has unfairly and deceptively depicted the business in an ad, the NAD will:

• A) issue a cease and desist order if it finds the ad is indeed deceptive and misleading
• B) investigate the ad to determine if the FTC Act has been violated
• C) collect information and evaluate data concerning the complaint to determine if the advertiser's claims can be substantiated.
• D) refer the case to the Federal Trade Commission since it involves a business filing the complaint

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Definitions:

Form 8-K

Form 8-K is a report required by the SEC from publicly traded companies to announce significant events that shareholders should know about, including acquisitions, changes in management, and financial results.

SEC

The U.S. Securities and Exchange Commission, a federal agency overseeing securities transactions, stock markets, and investment practices.

Filing

The process of submitting documents, typically to a government or regulatory body, in accordance with legal requirements or procedures.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.