Select the correct answer.

Jim feels cheated because an automobile dealer misled him by first advertising a car at a reduced price. When he wanted to purchase the car, the dealer told him that the price is no longer available and he had to buy the car at a higher price. Which agency is responsible for compelling the dealer to run truthful advertisements?

A. Federal Communications Commission
B. Federal Trade Commission
C. Food and Drug Administration
D. National Highway Traffic Safety Administration



Answer :

Final answer:

The Federal Trade Commission regulates truthful advertising and prevents deceptive practices by companies.


Explanation:

The Federal Trade Commission (FTC) is responsible for compelling businesses to run truthful advertisements and preventing deceptive practices.

For example, in the Volkswagen emissions scandal, the FTC filed a complaint against the company for misleading consumers with false claims about low emissions.

Advertisements must be truthful and supported by evidence to ensure consumers are not misled, as mandated by the FTC regulations.


Learn more about Federal Trade Commission regulations here:

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