Power Up Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Quantum Automotive Stores, a retail company that sells Power Up's batteries, engages in deceptive advertising practices. What actions can the FTC take against Quantum?
What will be an ideal response?
The Federal Trade Commission (FTC) can investigate the problem, and if, after the investigation, it believes that Quantum has engaged in deceptive advertising, it can send a formal complaint to the alleged offender. Quantum may agree to a settlement. If not, the FTC can conduct a hearing before an administrative law judge (ALJ). If the FTC succeeds in proving that Quantum's ads are deceptive, it can issue a cease-and-desist order that requires the advertising to stop. It might also impose a counteradvertising sanction, requiring Quantum to issue new ads¾in print, on radio, and on television¾to inform the public about the earlier misinformation.
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