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Question
Scenario43The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says "Yes." The agency proceeds to produce a series of television spots featuring a wellknown sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is "Lightning RodThe Finest Rod Ever Cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC.
In the commercial, a sports star is shown in a sailboat on a beautiful lake, sending a long cast into the water, then listing the excellent features of the Lightning Rod. It closes with a well-known celebrity happily reeling in a fish. To meet FTC standards for this type of endorsement, the celebrity must:
a. be considered an expert in the field of sport fishing.
b. share 2 per cent of the expenses involved in the advertisement.
c. actually use the Lightning Rod when fishing on his own.
d. write the statements that he makes in the ad.
Answer
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