The Passage of the Wheeler-Lea Amendment in 1938 Had a Substantial

question 25

Multiple Choice

The passage of the Wheeler-Lea Amendment in 1938 had a substantial impact on advertising regulation in the United States. The passage of the amendment

• A) established the Federal Trade Commission.
• B) granted the FTC control over the effects of advertising on competition.
• C) allowed the FTC to regulate practices that it considered misleading to consumers.
• D) granted industries the right to form self-regulatory organizations.

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Definitions:

Yield Management

A strategy for maximizing revenue even when a firm has a fixed amount of something (goods, services, or capacity).

Price Bundling

A marketing strategy that involves selling multiple products or services together at a single price point.

Sanctioned Channels

Officially approved or recognized pathways through which information or goods are distributed.

Black Market

An illegal trade of goods or services conducted outside authorized, lawful systems of commerce.