Law I Deceptive Sales Practices Vocab

All of the following are true regarding telemarketing except

• it is the practice of selling or marketing goods and services by phone

• telemarketers are restricted to calling you between the hours of 8 A.M. and 9 P.M.

• telemarketers are required to tell you the total cost of products or services offered and any restrictions before you pay

• Even if you ask a telemarketer not to call you again, they are legally allowed to do so as long as they don't break any other laws regarding telemarketing

substantiation of advertising is

• the legal requirement for advertisers to provide a reasonable basis for objective claims that are made by a seller or advertiser in its ads

• an exaggerated statement or advertisement as to the desirability or reliability of a product or service

• a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

• the right to take possession of or hold a debtor's property until the debt for the property is paid in full

corrective advertising is

• the legal requirement for advertisers to provide a reasonable basis for objective claims that are made by a seller or advertiser in its ads

• an exaggerated statement or advertisement as to the desirability or reliability of a product or service

• a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

• the right to take possession of or hold a debtor's property until the debt for the property is paid in full

Puffing is

• the legal requirement for advertisers to provide a reasonable basis for objective claims that are made by a seller or advertiser in its ads

• an exaggerated statement or advertisement as to the desirability or reliability of a product or service

• a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

• the right to take possession of or hold a debtor's property until the debt for the property is paid in full

A lien is

• a strategy where a seller provides an insincere offer to sell a product on generous terms to get customers in the door, then proceed to bash the original product and try to sell another, more expensive item, instead

• an exaggerated statement or advertisement as to the desirability or reliability of a product or service

• a remedy imposed by the Federal Trade Commission requiring that any false claim in an advertisement be admitted and corrected in all future ads

• the right to take possession of or hold a debtor's property until the debt for the property is paid in full

Bait and Switch is

• a strategy where a seller provides an insincere offer to sell a product on generous terms to get customers in the door, then proceed to bash the original product and try to sell another, more expensive item, instead

• an exaggerated statement or advertisement as to the desirability or reliability of a product or service

• a telemeraketing scam where consumers are told they have "won the lottery" and simply have to give a credit or debit card number to collect their winnings

• when internet fraudsters send spam or pop-up messages that look like and claim to be from a business/organization you have dealt with in an attempt to trick you into entering personal financial information

Phishing is

• a strategy where a seller provides an insincere offer to sell a product on generous terms to get customers in the door, then proceed to bash the original product and try to sell another, more expensive item, instead

• an exaggerated statement or advertisement as to the desirability or reliability of a product or service

• a telemeraketing scam where consumers are told they have "won the lottery" and simply have to give a credit or debit card number to collect their winnings

• when internet fraudsters send spam or pop-up messages that look like and claim to be from a business/organization you have dealt with in an attempt to trick you into entering personal financial information

All of the following are examples of common Federal consumer protection methods except

• setting standards for the quality, safety and reliability of certain goods and services

• providing safety information about products that consumers may want to buy

• issuing of rules meant to improve the operating of the marketplace. Federal regulations requiring most food manufactures to include nutritional info on their products is an example.

• by setting price ceilings and floors for products in order to regulate the economy and ensure that consumers are given a fair deal

Class action refers to

• a lawsuit brought by one or more persons on behalf of a larger group

• what is done to compensate for an injury or to enforce some right

• an order given by an administrative agency or a judge to stop some illegal or deceptive activity

• a voluntary agreement to stop a practice that is claimed to be illegal

Remedy refers to

• a lawsuit brought by one or more persons on behalf of a larger group

• what is done to compensate for an injury or to enforce some right

• an order given by an administrative agency or a judge to stop some illegal or deceptive activity

• a voluntary agreement to stop a practice that is claimed to be illegal