Question

Which of the following statements is true of the Children's Advertising Review Unit- (CARU)? CARU's Self-Regulatory Guidelines for Children's Advertising are restricted-to truthfulness and accuracy to address children's developing cognitive abilities. CARU's activities include-the review and evaluation of child-directed advertising in CARU recognizes that the special-nature and needs of a youthful audience require particular The majority of claims reviewed under the-CARU-program are-for direct-response-TVads CARU discourages advertising and-marketing in the electronic retailing industry that broadcast media exclusively.1 care and diligence-on the part of advertisers. including long-and-short-form infomercials aimed at-children. contains unsubstantiated claims.1 Advertising practices considered unfair include: Multiple Choice statements that are misunderstood by the public due to their lack of knowledge claims made with prior substantiation. trade practices that could reasonably be avoided by customers. claims that might exploit children and older adults. inclusion of irrelevant information in ads The is the division of the Federal Trade Commission (FTC) that analyzes the impact of government regulation on competition and consumers. Multiple Choice Bureau of Economics Bureau of Compliance National Advertising Review Board Bureau of Reconstruction Trade Regulation Burearu

Answer 1

1. Option A. The Children’s Advertising Review Unit is a U.S. self-regulatory organization that was established in 1974. CARU reviews and evaluates advertising for truth, accuracy, appropriateness and sensitivity to children’s still developing cognitive abilities in accordance with its Self-Regulatory Program for Children's Advertising (the Guidelines) and relevant laws.

2. Option D.

Claims that might exploit such vulnerable groups as children and older adults.

3. Option A.

The Bureau of Economics helps the FTC evaluate the economic impact of its actions. It also analyzes the impact of government regulation on competition and consumers and provides Congress, the Executive Branch and the public with economic analysis of market processes as they relate to antitrust, consumer protection, and regulation.