A Firm Has Run a Comparative Ad, and a Competitor

question 221

Multiple Choice

A firm has run a comparative ad, and a competitor immediately complained that the claims made by the ad are deceptive. In such a case,

• A) the ad agency that created the ad could share responsibility in any action brought by the FTC.
• B) the firm that sponsored the ad might need to provide research proof that its claims are accurate.
• C) the Federal Trade Commission has the power to require corrective advertising-if the ad was really deceptive.
• D) All of these alternatives are true.

---

Definitions:

Inflation

The velocity at which the broad price tags for products and services surge, weakening the power to purchase.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, reflecting a lack of demand for goods and services.

Steel Industry

A sector of the economy that produces steel, a key material used in construction, transportation, and manufacturing.

Index of Leading Indicators

A composite statistic of several economic indicators that predict future economic activity and health.