Asked by Savanah Grieve on Jun 30, 2024

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Miracle Pill.Katie advertised that she had developed a pill for women that would result in weight loss,wrinkle loss,and improved vitality; and for men would result in all those things,plus hair growth.Her television advertisement showed miracle results allegedly obtained by consumers.Katie cautioned,however,that ingestion of the pill for six months was required before results would be evident.The pill was wildly popular.The Federal Trade Commission,however,investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements.Katie claimed that she was merely involved in the use of generalities and clear exaggerations.The Federal Trade Commission disagreed and issued a formal administrative complaint against her.After a hearing,the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills.After losing all appeals,Katie continued selling the pills until she was fined by the Federal Trade Commission.She has since left the country and cannot be located.Which of the following are generalities and clear exaggerations allowed by the Federal Trade Commission?

A) Bait-and-switch advertising
B) Puffing
C) Hook-and-ladder advertising
D) Huffing
E) None of these,because the Federal Trade Commission does not allow generalities and clear exaggerations in advertisements.

Reasonable Basis

A standard which requires that claims, especially in law and finance, must have a foundation that is logically sound and justifiable.

Generalities

Statements or ideas that are broad and unspecific, lacking in detailed explanation or specificity.

Exaggerations

Statements that stretch the truth or overstate facts.

  • Recognize the importance of having a reasonable basis for claims made in product advertisements.
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Lumka SiyokoJul 03, 2024
Final Answer :
B
Explanation :
Deceptive advertising is the practice of advertising with claims that mislead or could mislead a reasonable consumer.Puffing,the use of generalities and clear exaggerations,is permissible.