36 connectmcg r aw hillcomconnecthmebookdosettab

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Unformatted text preview: led the F DA to issue warning letters that asked manufacturers to review their nutrition labels and claims for accuracy. T he program also was suspended while the F DA reviewed the claims the logos were implying.36 connect.mcg r aw- hill.com/connect/hmEBook.do?setTab= sectionTabs 1/3 9/15/13 M cGr aw- Hill Connect - Ebook Is this ad an example of puffery or dec eption? Many product categories fall under self-regulatory restrictions or guidelines. F or example, advertising to children is regulated primarily through self-regulatory mechanisms designed by the National Association of Broadcasters and the Better Business Bureau's Children's Advertising Review Unit. T he only formal regulation of children's advertising appears in the Children's T elevision Act of 1990, which limits the amount of advertising broadcast during children's viewing hours.37 Recently, to make matters even more complicated for advertisers, state attorneys general's offices have begun to inquire into various advertising practices and assert their authority to regulate advertising in their states. T he EU also has increased its regulation of advertising for EU member nations. Many of these state and European regulations are more restrictive than existing federal or self-regulatory requirements. T he line between what is legal and illegal is more difficult to discern when it comes to p u ffe r y, which is the legal exaggeration of praise, stopping just short of deception, lavished on a product.38 T ake, for instance, the following claims found in a classified real estate section: “Lovely T ownhome, F eels Like Single F amily,” “Stunningly Beautiful,” “Best Price in T own,” “Bargain of the Year.” Since all of these claims are highly subjective, and none could be proven true or false, they are considered to be puffery and therefore allowed under the law. How do the courts determine what makes an ad deceptive, rather than simply puffery? T he F T C's position is that it “will not pursue cases involving obviously exaggerated or puffing representations, i.e., those that ordin...
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