The Key Elements in the Federal Trade Commission's (FTC's) Definition

question 128

Multiple Choice

The key elements in the Federal Trade Commission's (FTC's) definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it must have

• A)materiality.
• B)selective exposure.
• C)selective retention.
• D)puffery.
• E)peripheral importance. The third key element to the FTC's definition of deception is materiality.According to the FTC a "material" misrepresentation or practice is one that is likely to affect a consumer's choice or conduct with regard to a product or service.

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Definitions:

Business Strategy

A plan of action designed to achieve a set of objectives that will ensure the long-term success and viability of a business.

Strategic Business Unit

A semi-autonomous division within a large company that focuses on a specific market or product line.

Strategy Formulation

The process of creating strategies to be implemented by an organization to achieve long-term goals.

Organizational Environment

The set of external and internal factors that influence an organization's operating situation, including regulatory, economic, social, and technological factors.