Section 5(a) of the FTC Act provides that "unfair or deceptive acts or practices in or affecting commerce are declared unlawful" (15 U.S.C. § 45(a)(1)). The statute empowers the Federal Trade Commission (FTC) to regulate deceptive advertising. After a

complaint is filed, the FTC will investigate and if meritorious, an administrative judge will issue a ruling after the presentation of evidence by both sides (FTC and the accused party in the dispute). The losing party can appeal to the Commission, which would conduct another proceeding. The losing party before the FTC can appeal to a federal appeals court, and ultimately to the U.S. Supreme Court. Remedies for violations include: • Consent Decree (merchant consents to stop) • Cease and desist order (FTC orders the merchant to stop) • Fines (merchant pays government for the violation) • Corrective Advertising (merchant re-educates consuming public on what is actually the truth) Read about these two recently settled cases: http://www.ftc.gov/opa/2011/05/oreck.shtm; http://www.ftc.gov/opa/2010/10/dmc.shtm . What type of evidence would the administrative law judge or the Commission need to adjudicate whether or not the claims were false and misleading?


Oreck claimed that two of its appliances could reduce the risk of flu and other illnesses, and eliminate virtually all common germs and allergens. Oreck would have to provide some type of scientific/medical evidence to support these claims, such as studies on what kills germs that cause illnesses coupled with engineering/medical proof that the technology eliminated whatever caused the disease. The same applies to the marketers of the dietary supplements Supreme Greens and Coral Calcium. The makers of these products touted the supplements as a cure for ailments ranging from cancer and Parkinson's disease to heart disease and autoimmune diseases. The makers would have to bring forward clinical studies, scientific data, or other similar validated evidence to ensure these claims were valid in some form.

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A. Aggressive service B. Noise C. Negative communication D. Conflict

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Indicate whether the statement is true or false.

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What will be an ideal response?

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Gregor has worked in software quality assurance for three years, but is looking for opportunities at other companies as a means to increase his salary and gain responsibility. To prepare for his interview for a software engineer position, he studies programming in his spare time and asks friends who are already programmers for interview tips. Despite his relative lack of experience, he is thrilled when the human resources manager for the new company calls to tell him he has been hired. Although he is eager to please his new boss, he gets nervous when his first assignment requires him to implement a new user interface feature in a programming language he is not very familiar with. While feeling a bit anxious about his ability to complete the task, he uses online tutorials and asks for

guidance from co-workers to help him achieve his goal. He has to work late for three nights, but by the end of the week, he is proud to have accomplished the task successfully and have learned new skills in the process. Gregor's path to success is an example of A. time pressure. B. work complexity. C. role ambiguity. D. work responsibility. E. role overload.

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