Asked by Evelyn Domingo on May 22, 2024
Verified
Spicy Salsa Inc. complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to
A) conduct negotiations between the competitors.
B) draft a formal complaint.
C) issue a cease-and-desist order.
D) permit Spicy to broadcast similarly deceptive counteradvertising.
Cease-And-Desist Order
An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.
Federal Trade Commission
An independent agency of the United States government, established to prevent unfair business practices and promote consumer protection.
- Absorb the implications of dishonest advertising and the Federal Trade Commission's (FTC) role in policing advertising guidelines.
Verified Answer
AA
Andrea AyalaMay 25, 2024
Final Answer :
B
Explanation :
The FTC, after concluding an ad is deceptive, would typically draft a formal complaint as a next step. This initiates formal legal proceedings against the company responsible for the deceptive advertising.
Learning Objectives
- Absorb the implications of dishonest advertising and the Federal Trade Commission's (FTC) role in policing advertising guidelines.