Question

The Federal Trade Commission recently instituted an adjudicative proceeding against OK Corp., a manufacturer of inflatable dolls. OK is alleged to have made deceptive statements concerning the quality of its product in nationwide advertisements. Which of the following statements is accurate?

A. If the statements in the OK ads were material misrepresentation that could mislead reasonable consumers, the FTC's deception standard would require a conclusion that OK did engage in deceptive advertising.

B. OK may be held to have engaged in deceptive advertising even if all company employees and executives involved in advertising decisions believed in good faith that false statements in the ads were true.

C. If the FTC proves that the intent in OK advertisements was to offend reasonable consumers, then an administrative law judge could order OK to cease making such an advertising claim.

D. OK cannot be held to have engaged in deceptive advertising if no consumers have actually been deceived by the OK ads.

Answer

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