Communications 300 Lesson 6

Public relations practitioners can be held liable for negligent misrepresentation if they understand the consequences of a party's reliance on their false material statements. This means that if a PR practitioner knowingly makes false statements that someone relies on and suffers harm as a result, they can be held responsible for their actions. This emphasizes the importance of truthfulness and accuracy in public relations, as practitioners have a duty to provide reliable information to the public.

The Federal Trade Commission (FTC) is indeed responsible for both protecting the public from unfair and deceptive advertising and marketing practices, as well as promoting competition among competitors. The FTC works to ensure that businesses engage in fair competition and do not engage in deceptive or fraudulent practices that could harm consumers. By enforcing laws and regulations, the FTC aims to create a level playing field for businesses while safeguarding consumer interests.

Corporate expression receives the most First Amendment protection because corporations, like individuals, have the right to free speech. The Supreme Court has recognized that corporations have the right to engage in political speech and express their views on social and political issues. This protection is based on the belief that restricting corporate expression would also restrict the speech of the individuals who make up the corporation. Commercial expression, on the other hand, is subject to more regulation and restrictions because it is considered to be primarily motivated by profit rather than the expression of ideas or opinions.

The explanation for the given correct answer is that the text does not take the position that PR practitioners are generally well advised to trust standard form contracts or that they are inherently safe legally.

The correct answer is "has no First Amendment protection whatsoever." This means that corporate expression that is false or misleading and knowingly designed to mislead consumers does not have any protection under the First Amendment. This is in contrast to false political speech, which is still protected by the First Amendment.

A material claim is likely to affect a consumer's decision because it provides information or makes a statement that has the potential to influence a consumer's purchasing behavior. This means that the claim has the power to sway a consumer's opinion or choice when it comes to buying a product or service. It could be a claim about the product's features, benefits, quality, or any other aspect that might be important to the consumer. Therefore, a material claim holds significance in terms of its impact on consumer decision-making.

The correct answer is "is narrowly tailored to achieve the desired objective." This means that the regulation should be specifically crafted to target and address the government's objective in the most precise and limited way possible. It should not be overly broad or burdensome, but rather focused and effective in achieving its intended purpose.

Rulemaking is a FTC preventative remedy that has the force of law. Rulemaking refers to the process through which an administrative agency, such as the FTC, creates rules and regulations that have the same legal effect as statutes. These rules are binding and enforceable, and individuals and businesses must comply with them. Rulemaking allows the FTC to establish specific requirements and standards to prevent unfair or deceptive practices and protect consumers. Unlike advisory opinions, policy statements, or consent agreements, rulemaking carries the weight of law and is legally binding.

Public relations practitioners must understand business laws that apply to their activities, as well as PR and First Amendment laws. This is because public relations involves communication and interaction with various stakeholders, including the media, clients, and the public. Understanding business laws ensures that practitioners comply with legal regulations in areas such as contracts, intellectual property, and employment. Additionally, knowledge of PR and First Amendment laws is essential to navigate issues related to freedom of speech, defamation, and privacy rights. Overall, having a comprehensive understanding of these laws enables practitioners to effectively and ethically carry out their responsibilities in the field of public relations.

The statement that journalists' promises of confidentiality are legally enforceable is false. While journalists may promise to keep a source's identity confidential, there is no legal obligation for them to do so. Journalists have the right to protect their sources, but they can still be compelled by a court to reveal their sources under certain circumstances. Therefore, PR practitioners should be cautious when sharing sensitive information with journalists, as there is no guarantee of confidentiality.

The correct answer is that the FTC focuses on state and local advertising, as well as national advertising. This means that the FTC is responsible for regulating and monitoring advertising practices at both the state and local levels, in addition to national advertising campaigns. This indicates that the FTC has a broad jurisdiction and is involved in overseeing various aspects of advertising to ensure fair and truthful practices.

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In Liquormart (1996), the Supreme Court did not indicate that the government has broad discretion to suppress truthful, non-misleading information for paternalistic purposes. This statement contradicts the ruling in Liquormart, where the Court held that the government cannot restrict the advertisement of truthful, non-misleading information about lawful products for paternalistic reasons. The Court emphasized the importance of free speech and commercial expression in this case.

Advertisers signing a consent agreement means that they agree to stop the false or misleading advertising practices, without admitting liability. This allows them to avoid a lengthy legal process and potential penalties, while still rectifying their actions.

The correct answer is that the CARU (Children's Advertising Review Unit) is part of the Council of Better Business Bureaus. This means that CARU is an organization that is affiliated with the Council of Better Business Bureaus and operates under its umbrella. CARU is responsible for reviewing and regulating advertising that is targeted towards children, ensuring that it meets ethical standards and does not exploit or deceive young audiences.

PR practitioners should not base their behavior on state law when there is a conflict with federal law. Federal law takes precedence over state law in matters of corporate business practices.

The correct answer is "The representation or omission must be likely to cause harm." This is not one of the four key parts of the FTC's definition of deceptive ads. The four key parts include: the ad must contain a representation or omission of information that is likely to mislead, the representation or omission must be material, the representation or omission must be likely to mislead any member of the consuming public, and the representation or omission must be likely to affect a consumer's decision to purchase or use the product.

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The correct answer states that a statement of ownership by the PR agency should be included in a proposal's title page to assure that the prospective client won't use the ideas presented in the proposal. This is because according to the Supreme Court, free-lancers do not own the copyright to the works they create, and public relations are generally considered "works for hire" owned by the client. Therefore, including a statement of ownership protects the PR agency's ideas and prevents the client from using them without permission.