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.

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Definitions:

Organizational Communication

The study and practice of how information is exchanged and processed within an organizational context to achieve mutual understanding and organizational goals.

Bureaucracy

An organization structure characterized by standardized procedures, hierarchical division of responsibilities, and administrative rules and guidelines.

Data Breach

An incident where confidential, protected, or sensitive information is accessed, disclosed, or taken without authorization.

Apology

An expression of regret or sorrow for having caused inconvenience, harm, or offense, often accompanied by an acknowledgment of responsibility and a gesture of making amends.