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Mathematics, health & fitness, business & finance, technology & engineering, food & beverage, random knowledge, see full index, chapter 24 - consumer law flashcards preview, business law for accountants > chapter 24 - consumer law > flashcards.

bait-and-switch advertising

• advertising a product at a very attractive price (the bait) and then informing the consumer, once he or she is in the store, that the advertised product is either not available or is of poor quality; the customer is then urged to purchase (switched to) a more expensive item
• under the FTC guidelines, bait-and-switch advertising occurs if the seller refuses to show the advertised item, fails to have a reasonable quantity of the item in stock, fails to promise to deliver the advertised item within a reasonable time, or discourages employees from selling the item

cease-and-desist order

• if the FTC succeeds in proving that an advertisement is unfair or deceptive, it usually issues a cease-and-desist order requiring the company to stop the challenged advertising

consumer law

• the body of statutes, agency rules, and judicial decisions protecting consumers of goods and services from dangerous manufacturing techniques, mislabeling, unfair credit practices, deceptive advertising, and so on
• consumer laws provide remedies and protections that are not ordinarily available to merchants or to businesses

“cooling-off” laws

• a set of federal and state laws designed to protect purchasers and lessees of goods or property
• for example, the Federal Trade Commission’s cooling-off period is three business days for purchases of goods or services from door-to-door salespersons
• cooling off periods vary for loans, mortgages, leases, etc.

counteradvertising

• new advertising that is undertaken pursuant to a Federal Trade Commission order for the purpose of correcting earlier tasks claims that were made about a product

deceptive advertising

• advertising that misleads consumers, either by making unjustified claims concerning a product’s performance or by omitting a material fact concerning the product’s composition or performance
• vague generalities and obvious exaggerations are permissible and are known as puffery
• when a claim takes on the appearance of literal authenticity, however, it may create problems
• advertising that appears to be based on factual evidence but in fact is not reasonably supported by some evidence will be deemed deceptive
• some advertisements contain “half-truths,” meaning that the presented information is true but incomplete and therefore leads consumers to a false conclusion
• advertising that contains an endorsement by a celebrity may be deemed deceptive if the celebrity does not actually use the product

multiple product order

• an order issued by the Federal Trade Commission to a firm that has engaged in deceptive advertising by which the firm is required to cease and desist from false advertising not only in regard to the product that was the subject of the action but also in regard to all the firm’s other products

Regulation Z

• a set of rules promulgation by the Federal Reserve Board to implement the provisions of the Truth-in-Lending Act
• if the contracting parties are subject to the Truth-in-Lending Act, the requirements of Regulation Z apply to any transaction involving an installment sales contract that calls for payment to be made in more than four installments
• transactions typically include : installment loans, retail and installment sales, car loans, home-improvement loans, and certain real estate loans if the amount of financing is less than $25,000

validation notice

• an initial notice to a debtor from a collection agency informing the debtor that he or she has thirty days to challenge the debt and request verification

SAMPLE TEST QUESTIONS

• Through careless manufacturing practices, Metalworks Company makes and distributes unsafe products that are sold to Nabi and other consumers. This may be subject to sanctions under : a. federal and state law b. federal law only c. no law, according to the principles of freedom to contract d. state law only

ANSWER : (A) CORRECT : (A) federal and state law

• Slow-Brew Coffee Company sells coffee and related beverages. The company’s ad contends that ambitious business persons “Drink Up & Rise Up in the World!” The Federal Trade Commission would consider this ad to be : a. false and misleading b. impermissibly vague and general c. a deceptive half-truth d. none of the choices

ANSWER : (B) CORRECT : (D) none of the choices

• SmartPhone Company’s ad states that its product is “The Best that Money Can Buy.” Because of this ad, the Federal Trade Commission is most likely to issue : a. a cease-and-desist order b. a counteradvertising order c. a multiple product order d. none of the choices
• Mouth & Gums, Inc. (CSI), engages in deceptive advertising when it markets its product Oral Rinse as able to kill germs over long periods of time. In an action against Mouth & Gums, the firm is ordered to stop its false advertising of Oral Rinse and other products. This is : a. a counteradvertising order b. a multiple product order c. a “cooling-off” law d. a validation notice

ANSWER : (B) CORRECT : (B) a multiple product order

• Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa’s competitor. The FTC investigates and concludes that the ad is deceptive. The FTC’s next step is to : a. conduct negotiations between the competitors b. draft a formal complaint c. issue a cease-and-desist order d. permit Spicy Salsa to broadcast similarly deceptive counteradvertising

ANSWER : (C) CORRECT : (B) draft a formal complaint

• Medi-Insurance Company faxes ads to Nancy and other individual consumers without the recipients’ permission. This is subject to : a. a cease-and-desist order by the Federal Trade Commission b. no sanctions c. possible fines by the Federal Communications Commission d. rescission on the order of the Federal Reserve Board

ANSWER : (C) CORRECT : (C) possible fines by the Federal Communications Commission

• Sweet Treats, Inc., wants to market a new snack food. On the product’s label, standard nutrition facts are : a. prohibited b. required c. strictly voluntary d. warranted by the nature of the food

ANSWER : (B) CORRECT : (B) required

• Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is : a. a restaurant chain with twenty or more locations b. a food distributor with twenty or more customers c. a food processor with twenty or more products d. a food producer with twenty or more acres

ANSWER : (A) CORRECT : (A) a restaurant chain with twenty or more locations

• Nature’s Food Market sells groceries. Metro Snacks & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to prevent unsafe food and drugs from being sold is : a. Nature’s Food Mart and Metro Snacks & Drug Store b. Metro Snacks & Drug Store only c. the Federal Trade Commission d. the Food and Drug Administration

ANSWER : (D) CORRECT : (D) the Food and Drug Administration

• Grid Tool Company makes and sells tools. One of the tools is believed to be hazardous. The appropriate government agency may require Grid to : a. export the tool and sell it only abroad b. increase the price to cover the cost of any injuries or damage c. reduce the price to indicate the hazard to customers d. remove the tool from the market

ANSWER : (D) CORRECT : (D) remove the tool from the market

• Grover signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances - stove, refrigerator, dishwasher, microwave, and toaster oven - for $3,999. This transaction is subject to : a. no federal law b. the Fair Credit Reporting Act c. the Telecommunications Act d. the Truth-in-Lending Act

ANSWER : (D) CORRECT : (D) the Truth-in-Lending Act

• Tory borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to : a. no federal law b. the Consumer Leasing Act c. the Consumer Product Safety Act d. the Truth-in-Lending Act

ANSWER : (D) ANSWER : (D) the Truth-in-Lending Act

• Celia borrows $20,000 from Debit & Credit Union to repair her home and to buy a car. She buys a laptop from eStuf Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to : a. the car loan only b. the home repair loan only c. the retail installment sale only d. the car loan, the home repair loans, and the retail installment sale

ANSWER : (D) CORRECT : (D) the car loan, the home repair loans, and the retail installment sale

• In the ordinary course of business, Loan2Buy offers credit to Mai and other consumers and reports on the loans to credit agencies. To save time and money, Loan2Buy generally does not correct or update its reported information. This is most likely to result in : a. a levy of a nominal fine b. an assessment of damages c. an order of rescission of the loan contracts d. no sanctions

ANSWER : (C) CORRECT : (B) an assessment of damages

• QuikPay, Inc., extends its credit to consumers. QuikPay is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on : a. intelligence b. education c. income d. race

ANSWER : (D) CORRECT : (D) race

• Jasmine receives an unsolicited credit card in the mail and tosses it on her desk. Without Jasmine’s permission, her roommate Ilene uses the card to buy a new tablet for $500. Jasmine is : a. liable for $500 b. liable for $250 c. liable for $50 d. not liable for any amount

ANSWER : (D) CORRECT : (D) not liable for any amount

• Debt & Loan Company Agency calls Ethel several times a day, and sometimes in the middle of the night, about an overdue bill that a Furniture4U turned over to Debt & Loan for collection. This is a violation of : a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

ANSWER : (C) CORRECT : (C) the Fair Debt Collection Practices Act

• Lucy takes out a student loan from Midtown Bank. When she fails to make the scheduled payments for six months, Midtown advises her of further action that it will take. This violates : a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

ANSWER : (A) CORRECT : (A) no federal law

• Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip’s parents. This violates : a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act
• The direct department of Discount Retail Stores, Inc., calls Emmett at work about an overdue bill. Emmett’s employer objects. Discount Retail’s credit department continues to call Emmett at work. This is a violation of : a. no federal law b. the Fair and Accurate Credit Transactions Act c. the Fair Debt Collection Practices Act d. the Truth-in-Lending Act

Selected areas of Consumer Law Regulated by Statutes

• Advertising : example : The Federal Trade Commission Act
• Labeling and Packaging : example : The Fair Packaging and Labeling Act
• Sales : example : The FTC Mail-Order Rule
• Credit Protection : example : The Consumer Credit Protection Act
• Product Safety : example : The Consumer Product Safety Act
• Food and Drugs : example : The Federal Food, Drug, and Cosmetic Act

Federal Trade Commission Act

• created the Federal Trade Commission (FTC) to carry out the broadly stated goals of preventing unfair and deceptive trade practices, including deceptive advertising

Online Deceptive Advertising

• the FTC actively monitors online advertising and has identified hundreds of Web sites that have made false or deceptive claims for products ranging from medical treatments for various diseases to exercise equipment and weight-loss aids
• guidelines call for “clear and conspicuous” disclosure of any qualifying or limiting information
• FTC suggests that advertisers should assume that consumers will not read an entire web page so the disclosure should be placed as close as possible to the claim being qualified or be included within the claim itself ; the next best location is on a section of the page to which a consumer can easily scroll, generally, hyperlinks to a disclosure are recommended only for lengthy disclosures or if disclosure must be repeated on a web page
• Congress passed the federal CAN-SPAM act to combat the problems associated with unsolicited commercial emails, commonly referred to as spam
• many states have also passed consumer protection laws that regulate deceptive online advertising

FTC three basic requirements to help online businesses comply with existing laws prohibiting deceptive advertising

• All ads - both online and offline - must be truthful and not misleading
• The claims made in an ad must be substantiated - that is, advertisers must have evidence to back up their claims
• Ads cannot be unfair, which the FTC defines as “likely to cause substantial consumer injury that consumers could not reasonably avoid and that is not outweighed by the benefit to consumers or competition”

Federal Trade Commission actions

• Formal Complaint: if the FTC concludes that a given advertisement is unfair or deceptive, it drafts a formal complaint, which is sent to the alleged offender; the company may agree to settle the complaint without further proceedings, if not the FTC can conduct a hearing in which the company can present its defense
• FTC Orders : cease-and-desist, counteradvertising, multiple product order
• Restitution possible

Telephone Consumer Protection Act (TCPA)

• prohibits telephone solicitation using an automatic telephone dialing system or a prerecorded voice
• in addition, most states have statutes regulating telephone solicitation
• the TCPA also makes it illegal to transmit ads via fax without first obtaining the recipient’s permission
• the Federal Communications Commission (FCC) imposes substantial fines on companies that violate the junk fax provisions of the act
• TCPA also gives consumers a right to sue for either $500 for each violation of the act or for the actual monetary losses resulting from a violation, whichever is greater
• if a court finds that a defendant willingly or knowingly violated the act, the court has the discretion to treble (triple) the amount of damages awarded

Telemarketing and Consumer Fraud Act

• directed the FTC to establish rules governing telemarketing and to bring actions against fraudulent telemarketers

Telemarketing Sales Rule (TSR)

• the FTC’s Telemarketing Sales Rule requires a telemarketer to identify the seller’s name, describe the product being sold, and disclose all material facts related to the sale (such as the total cost of the goods being sold)
• TSR makes it illegal for telemarketers to misrepresent information or facts about their goods or services
• a telemarketer must also remove a consumer’s name from its list of potential contacts if the customer so requests
• an amendment to the TSR established the national Do Not Call Registry and must refrain from calling consumers on the list
• TSR helps to protect consumers from illegal cross-border telemarketing operations.

Energy Policy and Conservation Act of 1975

• requires automakers to attach an information label to every new car
• the label must include the Environmental Protection Agency’s fuel economy estimate for the vehicle

Fair Packaging and Labeling Act

• requires that food product labels identify : 1. the product 2. the net quantity of the contents (and, if the number of servings is stated, the size of a serving) 3. the manufacturer 4. the packager or distributed
• the act also includes additional requirements concerning descriptions on packages, savings claims, components of nonfood products, and standards for the partial filling of packages

Nutrition Labeling and Education Act

• food products must bear labels detailing the nutritional content, including the number of calories and the amounts of various nutrients that the food contains
• requires standard nutrition facts (including the amount and type of fat that the food contains) to be listed on food labels and regulates the use of such terms as “fresh” and “low fat”
• the U.S. Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA) are the primary agencies that issue regulations on food labeling
• these rules are published in the Federal Register and updated annually

Health-care Reforms enacted by Congress in 2010

• include provisions aimed at combating obesity in the United States
• all restaurant chains with twenty or more locations are required to post caloric content of the foods on their menus so that customers will know how many calories they are eating
• foods offered through vending machines must also be labeled so that their caloric content is visible to would-be purchasers
• in addition, restaurants must post guidelines on the the number of calories that an average person requires daily so that customers can determine what portion a day’s calories a particular food will provide
• the federal law on menu labeling supersedes all state and local laws already in existence

Federal Reserve Board of Governors

• has issued a regulation that governs credit provisions associated with sales contracts

FTC Mail or Telephone Order Merchandise Rule

• amended the FTC Mail-Order Rule
• the rule provides specific protections for consumers who purchase goods over the phone, through the mail, by fax, or via the Internet (whether by smartphone, tablet device, or personal computer)
• merchants must ship orders within the time promised in their advertisements and notify consumers when orders cannot be shipped on time
• also requires merchants to issue a refund within a specified period of time when a consumer cancels an order

Postal Reorganization Act

• a consumer who receives unsolicited merchandise sent by the U.S. mail can keep it, throw it away, or dispose of it in any manner that he or she sees fit
• the recipient will not be obligated to the sender

Federal Food, Drug, and Cosmetic Act

• regulates food and drugs and protects consumers against adulterated (contaminated) and misbranded food and drugs
• establishes food standards, specified safe levels of potentially hazardous food additives, and provides classification of foods and food advertising and are mostly monitored and enforced by the FDA
• FDA has the responsibility of ensuring that drugs are safe and effective before that are marketed to the public
• because the FDA must ensure the safety of new medications, there is always a delay before drugs are available to the public and this sometimes leads to controversy

Food Safety Modernization Act (FSMA)

• provides greater government control over the U.S. Food safety system
• gives the FDA the authority to directly recall any food products that it suspects are tainted (rather than relying on producers to recall items)
• requires any person who manufactures, processes, packs, distributes, receives, holds, or imports food to pay a fee and register with the U.S. Department of Health and Human Services (there are some exceptions for small farmers)
• requires owners and operators of facilities to analyze and identify food safety hazards, implement preventive controls, monitor effectiveness, and take corrective actions
• also places more restrictions on importers of food and requires them to verify that imported foods meets U.S. Safety standards.

Consumer Product Safety Act

• created the first comprehensive scheme of regulation over masters of consumer safety
• set safety standards for consumer products
• ban the manufacture and sale of any product that the commission believes poses an “unreasonable risk “ to consumers (products banned have included various types of fireworks, cribs, and toys, as well as many products containing asbestos or vinyl chloride)
• remove from the market any products it believes to be imminently hazardous. The CPSC frequently works in conjunction with manufacturers to voluntarily recall defective products from stores
• require manufacturers to report on any products already sold or intended for sale if the products have proved to be hazardous
• administer other product-safety legislation, including the Child Protection and Toy Safety Act of 1969 and the Federal Hazardous Substances Act of 1960
• the Consumer Product Safety Act requires the distributors of consumer products to notify the CPSC immediately if they receive information that a product “contains a defect which … creates a substantial risk to the public” or “an unreasonable risk of serious injury or death”

Health-Care Reforms

• by 2014, new rights and benefits prohibited certain insurance company practices, such as denying coverage for preexisting conditions
• expanded access to health care by enabling more children to obtain health insurance coverage
• reforms allow young adults (under age twenty-six) to remain on their parents’ health insurance
• also ended lifetime and most annual limits on care, and gave patients access to recommended preventative services (such as cancer screening, vaccinations, and well-baby checks) without cost
• Medicare recipients now receive a 50 percent discount on name-brand drugs, and the gap in Medicare’s prescription drug coverage will be eliminated by 2020
• in an attempt to control the rising costs of health insurance, the law places restrictions on insurance companies; insurance companies must spend at least 85 percent of all premium dollars collected from large employers on benefits and quality improvement
• if insurance companies do not meet these goals, they must provide rebates to consumers
• states can require insurance companies to justify their premium increases to be eligible to participate in the new health insurance exchanges

Truth-in-Lending Act

• name commonly given to Title I of the Consumer Credit Protection Act and is basically a disclosure law and administered by the Federal Reserve Board and requires sellers and lenders to disclose credit terms or loan terms so that individuals can shop around for the best financing agreements
• does not extend to other legal entities
• requirements apply only to persons who, in the ordinary course of business, lend funds, sell on credit, or arrange for the extension of credit
• sales or loans made between two consumers do not come under the protection of the act
• protects only debtors who are the natural persons (as opposed to the artificial “person” of a corporation)
• under the provisions of the TILA, all of the terms of a credit instrument must be clearly and conspicuously disclosed
• a lender must disclose the annual percentage rate (APR), finance charge, amount financed, and total payments (the sum of the amount loaned, plus any fees, finance charges, and interest at the end of the loan)
• TILA provides for contract rescission (cancellation) if a creditor fails to follow the exact procedures required by the act
• contains provisions regarding credit cards and one provision limits the liability of a cardholder to $50 per card for unauthorized charges made before the creditor is notified that the card has been lost
• if a consumer receives an unsolicited credit card in the mail that is later stolen, the company that issued the card cannot charge the consumer for any unauthorized charges
• protections were added in 2010 : 1. A company may not retroactively increase the interest rates on existing card balances unless the account is sixty days delinquent 2. A company must provide forty-five days’ advance notice to consumers before changing its credit-card terms 3. Monthly bills must be sent to a cardholders twenty-one days before it’s due date 4. The interest rate charged on a customers’ credit-card balance ,as not be increased except in specific situations, such as when a promotional rate ends 5. A company may not charge over-limit fees except in specified situations 6. When the customer has balances at different interest rates, payments in excess of the minimum amount due must be applied first to the balance with the highest rate (for instance, a higher interest rate is commonly charged for cash advances) 7. A company may not compute finance charges based on the previous billing cycle (a practice known as double-cycle billing, which hurts consumers because they are charged interest do the previous cycle even though they have paid the bill in full

Equal Credit Opportunity Act (ECOA)

• enacted by Congress as an amendment to the TILA
• prohibits the denial of credit solely on the basis of religion, national origin, color, gender, marital status, or age
• prohibits credit discrimination on the basis of whether an individual receives certain forms of income, such as public-assistance benefits
• a creditor may not require a cosigner on a credit instrument if the applicant qualifies under the creditors’ standards for creditworthiness for the amount and terms if the credit request

Fair Credit Reporting Act (FCRA)

• protects consumers against inaccurate credit reporting and requires that lenders and other creditors report correct, relevant, and up-to-date information
• provides that consumer credit reporting agencies may issue credit reports to users only for specified purposes (legitimate purposes include the extension of credit, the issuance of insurance policies, and in response to the consumer’s request)
• any time a consumer is denied credit or insurance on the basis of his or her credit report, the consumer must be notified of that fact
• the notice that must include the name and address of the credit reporting agency that issued the report and must be sent to consumers who are charged more than others ordinarily would be for credit or insurance because of their credit reports
• consumers may request the source of any information used by the credit agency, as well as the identity of anyone who has received an agency’s report
• consumers are also permitted to access the information about them contained in a credit reporting agency’s files
• if a consumer discovers that an agency’s files contain inaccurate information, he or she should report the problem to the agency
• a credit reporting agency that fails to comply with the act is liable for actual damages, plus additional damages not to exceed $1,000 and attorney’s fees
• creditors and other companies that use information from credit reporting agencies may also be liable for violations of the FCRA

Fair and Accurate Credit Transactions (FACT)

• passed by Congress in an effort to combat identity theft
• established a national fraud alert system
• consumers who suspect that they have been victimized by identity theft can place an alert on their credit files
• requires the major credit reporting agencies to provide consumers with free copies of their own credit reports every twelve months
• another provision requires account numbers on credit card receipts to be truncated (shortened)
• merchants, employees, or others who may have access to the receipts no longer have the consumers’ names and full credit card numbers
• financial institutions must work with the FTC to identify “red flag” indicators of identity theft and to develop rules for the disposal of sensitive credit information

Fair Debt Collection Practices Act (FDCPA)

• attempts to curb perceive abuses by collection agencies
• only applies to specialized debt collection agencies and attorneys who regularly attempt to collect debts on behalf of someone else, usually for a percentage of the amount owed
• creditors attempting to collect debts are not covered by the act unless, by misrepresenting themselves, they cause debtor’s to believe they are collection agencies
• a collection agency may not do any of the following : 1. Contact the debtor at the debtor’s place of employment if the debtor’s employee objects 2. Contact the debtor at inconvenient or unusual times (for example, at three o’ clock in the morning) or at any time, if the debtor is being represented by a attorney 3. Contact third parties other than the debtor’s parents, spouse, or financial adviser about payment of a debt unless a court authorizes such action 4. Harass or intimidate the debtor (by using abusive or threatening violence, for example) or make false or misleading statements (such as posing as a police officer 5. Communicate with the debtor at any time after receiving notice that the debtor is refusing to pay the debt, except to advise the debtor of further action to be taken by the collection agency
• debt collectors who violate the act are exempt from liability if they can show that the violation was not intentional and “resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error”

Decks in Business Law for Accountants Class (23):

• Chapter 23 Administrative Agencies
• Chapter 24 Consumer Law
• Chapter 25 Environmental Law
• Chapter 26 Antitrust Laws
• Chapter 27 Professional Liability And Accountability
• Chapter 10 Employment, Immigration, And Labor Laws
• Chapter 11 Employment Discrimination And Diversity
• Chapter 8 Agency Formation And Duties
• Chapter 9 Agency Limited To Third Parties And Termination
• Chapter 16 The Formation Of Sales And Lease Contracts
• Chapter 17 Title, Risk, And Insurable Interest
• Chapter 18 Performance And Breach Of Sales And Lease Contracts
• Chapter 19 Warranties
• Chapter 12 The Function And Creation Of Negotiable Instruments
• Chapter 13 Transferability And Holder In Due Course
• Chapter 14 Liability, Defenses, And Discharge
• Chapter 15 Banking In The Digital Age
• Chapter 20 Creditors' Rights And Remedies
• Chapter 21 Secured Transactions
• Chapter 22 Bankruptcy Law
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Travel Tours Company Faxes Ads to Uri and Other Individual

Question 51

Travel Tours Company faxes ads to Uri and other individual consumers without the recipients' permission. This is subject to

A) a cease-and-desist order by the Federal Trade Commission. B) no sanctions. C) possible fines by the Federal Communications Commission. D) rescission on the order of the Federal Reserve Board.

Correct Answer:

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Q46: Orange Company makes computers. The company's ad

Q47: Friendly Loan Company extends credit in the

Q48: To generate sales, Yakkity-Yak, Inc., uses phone

Q49: Precise GPS Company's ad states that its

Q50: Consumer Products, Inc. (CPI), in its ads,

Q52: Through unfair trade practices, Super Sales Company

Q53: GR8 Fashion, Inc., complains to the Federal

Q54: Penny Stock Company faxes ads to Quality

Q55: Like other manufacturers and sellers, Useful Products

Q56: Through careless manufacturing practices, Insta-Market Company makes

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Camarillo Travel Agency Faces Fine Over Faxed Ads

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The Federal Communications Commission has proposed a $85,500 fine against a Camarillo travel agency, Get-Aways Inc., for allegedly faxing unsolicited advertisements to consumers, its first such enforcement action.

The agency had warned the company in July that it was violating a 1991 law prohibiting such fax advertisements. Since that warning, the FCC said that Get-Aways has sent 19 unsolicited fax advertisements to eight consumers offering vacation packages.

The action is the FCC’s first proposed fine against a company for alleged unsolicited fax advertisements. The agency is stepping up efforts to enforce laws and regulations, and in October it created a separate Enforcement Bureau to handle such issues.

In the past year, the FCC received about 1,200 letters from consumers related to unsolicited faxes. It issued citations to about 20 companies since July warning that their fax advertisements violated the law.

Get-Aways has 30 days either to pay the fine or show why the penalty should be reduced or eliminated.

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The 10 Best Group Travel Tour Companies for 2023

Caroline Morse Teel

Caroline Morse Teel is the Managing Editor for SmarterTravel Media. Follow her adventures around the world on Instagram @TravelWithCaroline.

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For those truly epic, once-in-a-lifetime destinations, you want to leave your itinerary to the experts. Whether your dream is to see the Big Five on an African Safari, trek tall mountains, explore European cities, or something even wilder, a group tour is the easiest way to do it.

However, picking the wrong group tour company is the quickest way to ruin your trip. Make sure you choose a tour company that aligns with your goals and travel styles. Do you want an intimate group tour or do you prefer to make lots of new friends in a big group? Does the price line up with what you like (luxury vs. budget)? Is the itinerary going to all the places you want to see? 

We’ve done the research and found the very best group travel tour companies for 2023 for every type of traveler.

Best Overall Group Travel: Exodus Travels

With trips on every continent, Exodus Travels covers anywhere on this planet that you could possibly want to go, from popular destinations like the Amalfi Coast to well off-the-beaten path adventures like Tajikistan. This award-winning group travel company boasts thousands of repeat customers who sign up for trips year after year (97% of past participants would recommend Exodus Travels to a friend). 

These small group tours operate with only around 12-16 people, and always feature experienced local leaders who can give you a unique insight into your destination. Exodus Travels caters to any type of travel style, including trips broken down by type of activity (think walking, cycling, multi-adventure, winter, or cultural) as well as type of traveler (family, age group, etc.). There are curated collections (coastal, “away from it all”, European wilderness, and trips of a lifetime) to inspire you, as well as self-guided options for when you want all the benefits of a group tour planner without the actual group. Looking for that special safari? Exodus Travels just partners with the African Wildlife Foundation to create carefully curated luxury adventures that go above and beyond the standard safari. 

Exodus Travels tours work for almost any budget, with options that range from affordable to premium. 

Top Trip: Explore under-the-radar Europe by foot on Exodus Travels’ Lakes & Mountains of Slovenia walking tour .

A Taste of the Sweet Life in Slovenia

Best Adventure Group Travel: World Expeditions

World Expeditions has been taking adventurous travelers to remote locations all over the world ever since its first group trek through Nepal in 1975. Today, World Expeditions offers active itineraries on every continent. Intrepid travelers can opt for trips themed around mountaineering, rafting, cycling, hiking, and more. 

World Expeditions aims to leave communities and places where they operate tours better than they found them. Trips are created using the company’s Thoughtful Travel Charter as a guideline, which emphasizes respect for the environment, sustainability, having a positive impact on local communities, protecting wildlife, and more. 

World Expeditions’ trips are capped at just 16 people to provide a good experience for participants, and there are no single supplements for solo travelers willing to share a room with someone of the same gender. 

Top Trip: Summit Africa’s tallest mountain on a fully-supported trek up Kilimanjaro on World Expeditions’ eight day trip up the beautiful Lemosho Route . 

Best Budget Group Travel: G Adventures 

For travelers on a budget, G Adventures offers cheap group tours that make dream destinations accessible to nearly anyone. (Think: sailing the Galapagos for just $1,124 , criss-crossing India’s Golden Triangle for $559 , or spending 8 days in Bali for less than $800.)

G Adventures is one of the best tour companies for solo travelers as well, as most trips don’t have a single-supplement. You can choose to share a room with another G Adventures solo traveler, or pay extra to have your own space.

G Adventures keeps costs down by opting for cheaper hotels and local meals, and making certain activities optional (for an additional cost). Pick your travel style—options range from “basic” to more luxe tours run in partnership with National Geographic. Family tours, local living tours (featuring homestays), and wellness-focused tours are also available. 

Top Trip: G Adventures’ China Express trip is a great way to see the highlights of China if you’re short on both time and budget. 

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Best Educational Group Tours: EF Go Ahead Tours

When you really want to learn about a destination, consider a group trip with EF Go Ahead Tours . EF is the world’s largest private education company, and the Go Ahead Tours arm capitalizes on the company’s relationships with local educators, historians, and tour guides to create group trips that take you deep into a destination. 

These small group tours generally cap at 38 travelers, and feature unique educational experiences. For a bucket list trip, EF Go Ahead Tour’s special event tours are particularly enticing, as they offer behind-the-scenes access to tough-to-plan trips like Oktoberfest in Munich or Cherry Blossom season in Japan. 

Intimidated by solo travel? EF Go Ahead Tours is a great option for solo travelers, since it offers designated trips for solo travelers , where everyone is traveling alone, making it less intimidating.  

Top Trip: Bring the tastes of Italy home with you on EF Go Ahead Tours’ Food & Wine: Piedmont & Tuscany tour (operated in partnership with America’s Test Kitchen), where you’ll learn how to make local dishes. 

Best Responsible Group Travel: Intrepid Travel

Looking for a responsible group travel operator that focuses on bettering the communities and destinations they visit? Intrepid Travel is the world’s largest travel B Corporation, a certification for companies doing good. 

Intrepid Travel’s tours focus on sustainability, diversity, inclusion, and sustaining communities. The company has its own charity, The Intrepid Foundation , which has donated over 7 million dollars to over 130 community organizations. 

Intrepid Travel’s small group tours attract a wide range of travelers, but they are especially great for younger travelers, as they have a large number of trips designed for people aged 18-29 . (Other trips, including family-focused trips, are geared toward any age.)

Top Trip: Experience unforgettable wildlife encounters on Intrepid Travel’s Premium Uganda & Rwanda trip which includes time with the mountain gorillas of Uganda’s Bwindi Impenetrable Forest. 

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Best Private Group Travel: Kensington Tours

Whether your group consists of just two people or involves taking the entire extended family, Kensington Tours will take all the hassle of planning out of the equation. This private group operator creates personalized trips and itineraries tailored to your preferences, while their experts handle all the logistics and bookings. 

Plans are entirely flexible, and can even be changed while on the trip on a whim. Need some inspiration? Browse Kensington Tours’ travel ideas , to get some ideas for your next adventure. 

Top Trip: Sail around the stunning shores of Croatia and the Dalmation Islands on a private luxury catamaran on Kensington Tours’ fully customizable tour . 

Best Polar Group Travel: Chimu Adventures

Whether you’re headed north to the Artic or south to Antarctica, Chimu Adventures has the perfect polar group trip for you. Chimu Adventures has some of the most variety for polar trips, with options to fly, cruise, or a combination of both to get to your destination.

For an ultra-unique Antarctica trip, Chimu Adventures offers cruises departing from Australia or New Zealand (most Antarctica trips depart from Argentina). Can’t stay long? Book one of Chimu Adventures’ scenic flights to Antarctica , which fly as far as the south pole in one spectacular 16-hour day.

Chimu Adventures is one of the cheapest group trips to Antarctica, with rates starting under $5,000.

Top Trip: If you’re pressed for time (or simply don’t have the stomach for the Drake Passage), Chimu Adventures’ Antarctica Fly Cruise will get you to the ends of the earth quickly and smoothly.

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Best Group Tours for Solo Travelers: For the Love of Travel

Group tours can be a great way to meet new people, but they can sometimes skew on the older age range. If you’re between 25-39 and a solo traveler looking to meet new people, you’ll love For the Love of Travel . All participants on the trips are between 25-39, and according to the company, 80 percent are solo travelers—so you’ll make friends fast. Hoping to meet someone who will be more than just a friend on your next trip? Trips include a balanced number of “gal and guy spots” to ensure an even balance of genders within groups (and of course, non-binary genders are always welcome). 

For the Love of Travel offers weeklong (or longer) international trips as well as shorter weekender trips to nearby destinations like Mexico or Denver—perfect for people without a lot of vacation time.

Top Trip: Sleep in a glass igloo under the Northern Lights, go sledding with huskies, and warm up in traditional saunas on For the Love of Travel’s Lapland tour , already booking dates for 2024.

Best Biking Tours Group Travel: DuVine Cycling

Biking through the rolling hills of Italy or across the mountain roads of Chile sounds like a dream, but the logistics seem daunting (especially if you don’t want to haul all your own stuff from point-to-point). Enter: DuVine Cycling , a luxury small group tour company that specializes in bike trips. 

With trips across Europe, Latin America, Africa, Asia, and the United States, DuVine Cycling is a cyclist’s dream. Choose from all-biking trips or mix things up with a cycle and sail bike tour or a multi-sport adventure —no matter what, everything is included, from luxury boutique accommodations to top-quality name brand bikes. 

Top Trip: DuVine’s Holland Bike Tour promises “tulips, windmills, beer, and cheese”—what more could you need?

Best Luxury Group Travel: Abercrombie & Kent

Abercrombie & Kent has been delighting discerning travelers since 1962. Today, they take travelers on unforgettable adventures across over 100 different countries and all seven continents. Although Abercrombie & Kent’s trips are pricey, they encompass once-in-a-lifetime experiences like private jet tours around the world or luxury chartered cruises .

There are trips designed for solo travelers and families , and the small group journeys max out at around 14-18 guests.

Top Trip: Swim with whale sharks in the Philippines, feed proboscis monkeys in Malaysia, and photograph wild tigers in India on Abercrombie & Kent’s Wildlife Safari: Around the World by Private Jet trip , already booking dates into 2024.

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Effective Travel Ads: Examples and Ideas

Looking for fresh ideas on how to create ads for your travel business? In this article, we'll explore tourism advertisement, focusing on what really resonates with the viewers. We’ll share a selection of creative ideas and insights for marketers looking to kickstart their travel campaigns. Stay with us and get inspired.

Features of Engaging Travel Ads

Creating ads that grab attention and get stuck in one’s head, making them hum the ad’s catchy tunes on the way to work, isn't easy—it takes a whole team of creative minds. But even with all that creativity, these ads often share some key elements and are built on the same basic principles.

The 5 Commandments of Good Travel Ads:

1. Emotional resonance. Ads that evoke feelings of excitement, peace, or adventure tend to connect more deeply with viewers, encouraging them to imagine themselves in the setting.

2. Visual storytelling. Can’t afford a team of outstanding screenwriters? Luckily, in the tourism industry it’s often enough just to show what a destination looks like. This is the case, when an image speaks a thousand words, and a video is worth a thousand pictures.

3. Compelling narratives. Storytelling and a simple, but strong message is what truly sets great ads apart. Always keep in mind that people don’t want to buy tickets and tours - they pay for emotions, memories and adventures with their loved ones. If you want to create a strong message, define for yourself what your company’s mission is, and how exactly you aim to make your clients’ lives happier and easier.

4. Personalization. Speaking to a broad audience is rarely sufficient. Spend extra time to understand who your clients are. What are their lifestyles, budget, values? At what stage of decision-making are they? Are they just window shopping? Are they thinking about where to spend their honeymoons? Or maybe, they already have a destination in mind, and now search for the best deals? Conduct a survey, use big data and hire a strategy team to learn everything about your target audience.

5. Call to action. A self-explanatory, but often overlooked point. A strong CTA that clearly guides viewers on how to explore more about the destination or offer ensures the ad doesn't just captivate but also converts interest into action.

6 Best Travel Advertisement Examples

Let’s take a look at some travel ad examples to see how the industry giants do it.

1. American Express Travel

Why does this Delta SkyMiles American Express Cards ad work? It’s short, its message is perfectly clear and simple, and it speaks to a very specific demographic. If you’ve ever been in a long-distance relationship, you know how expensive it is to keep seeing your significant other frequently. Amex doesn’t offer their clients to save some money on flights. Instead, it offers to remove the obstacle that stands between them and their desired love lives.

In this ad , Amex offers exclusive access to event presales, to dedicated venue entryways and Card Member lounges:

Here is what the Vice President of Global Brand Advertising at Amex, Jessica Ling, has to say about this ad:

“Sports have the power to connect communities around the world. We’re excited to launch these high-energy, contextually relevant ad spots that show a mother and daughter building their connection through a shared love of sports. We hope by watching these stories, viewers will get a taste of the energy and excitement that comes with experiencing sports with Amex.”

2. Booking.com

What does the following Booking ad sell?

Right, it sells the opportunity to try oneself in different roles people don’t get to play in their everyday lives. Whether you're an office worker or a stay-at-home dad, book a vacation and be an explorer, an artist, or a professional surfer. This ad is a pro example of when a strong message gets across even without precise targeting.

And here is a banner ad by Booking:

It has several noteworthy features:

• a great photo, which conveys emotions;
• a clear and straigh-forward CTA;
• seasonality (it is tied to New Year -  a time, when most people probably reevaluated their life decisions and promised themselves to experience life more);
• a limited special offer.

Most companies strive to be omnipresent and reach viewers through all the possible channels. Here is an ad that runs across META platforms. Nothing fancy, but the main elements of a good ad are still here. It features a short video of surfers, a clear CTA that invites to install the app, and a short message that highlights the company’s main proposition - the possibility to find and book a place fast and easy. 

The company makes sure to dominate the search result pages too. Just last month they ran around 2.1M Search ads on Google:

And even though their Paid Ads game is strong, the company visibly invests a lot of resources into Search Engine Optimization . This way booking.com appears on the search result pages of most of the travel-related queries, saving a lot on clicks:

Most of the tourism industry giants use pop-up ads on their websites:

It’s a great opportunity to inform about your current special offers, or get visitors on the email list in return for some bonuses. You have to be careful with pop up ads though - sometimes they can do more harm than good. 

Read more about how to make effective pop up ads here . 

Another effective strategy that many companies use is user-generated ads:

Such approach kills several birds with one stone:

• it costs basically nothing;
• it serves as a social proof and makes the company look trustworthy;
• you get exposure among the users’ following.

Agoda also runs ads on Meta. This ad in particular is 6 seconds long, but enough for the actor to say the buzzwords:  “cashbacks, coupons, discounts”. Most companies use short formats on social media ads, saving longer and more complex video ads for Youtube.

And here is a beautiful campaign run by Agoda during the pandemic:

It shows sympathy for everyone stuck at home, and shifts the focus from closed borders to discovering places in our own countries. It’s compassionate and doesn’t pressure us to purchase anything. It simply suggests that now might be the time to see more of our own countries, and Agoda is here to help with special offers. 

The recipe is the same:

Understanding the pain of the target audience + strong positive message + beautiful emotional storytelling + great visuals. 

Be like other successful companies and don’t forget about mobile marketing . Travel companies that have mobile apps actively invest in Paid User Acquisition and App Store Optimization. 

But, of course, mobile marketing isn’t limited inside the app stores. Here is a creative and slightly dark YouTube ad from Kayak marketers, who did a great job at understanding the struggles of their target audience:

One more proof that the Kayak marketing team just gets us:

No, we’re not telling you to use politics in your marketing messages. But it’s always worth it to keep up with the latest news and trends, in which people are emotionally invested. If done tastefully, such ads are likely to become viral and connect with big audiences. 

Take a look at this campaign that ran on YouTube and TikTok:

Just perfect targeting. If you can, always address different segments separately.

This is an Expedia Facebook ad. If you look closely, you'll notice it's structured similarly to the travel ad examples from other companies we've discussed. It targets parents with family-friendly packages and features a clear call to action (CTA).

Expedia has a very strong social media game. Apart from the most popular media, it also runs ads on Pinterest, which has less competition and still isn't widely-used for advertising.

This video ad from Expedia is another good example of appealing to emotions and using a strong slogan:

If you’d like to get more inspiring ideas and see ad examples, choose a brand you look up to and browse through their social media and YouTube account. Also, Google, Meta and TikTok have open ad libraries that show what kind of campaigns run on the platforms at the moment. 

Ideas for Crafting Effective Travel Ads

Now let’s sum up what we have seen. Based on successful campaigns from leading companies, here are some straightforward ideas for making ads that connect with viewers and inspire action.

🥰 Make an Emotional Connection

Try to create a strong emotional bond with your audience. Like Agoda's campaign during the pandemic, show you understand and care about your audience's current challenges. Showing support for your clients without pushing for sales can make your brand feel more relatable and trustworthy.

🌍 Keep Up with Trends and News

As suggested in the Kayak example, staying updated with the latest trends and news can make your ads more relevant and engaging. This approach can help your ad become popular and connect with more people.

🤳 Use Content from Your Customers

‍ Add content made by your customers, as it's cost-effective and acts as proof of trust. Ads with content from users can make your brand seem more credible and expand your reach to the users' followers, making your company seem more reliable.

✔️ Show Clear Benefits

Make sure your ad clearly shows the unique advantages your service offers, like the Amex Miles Cards ad that focuses on solving a specific problem for its target audience. Ads that clearly state their benefits tend to work better.

🗂️ Target Carefully

‍ Make your message specific for different groups of people, as shown by Airbnb's campaign. The more personalized your ad feels to its viewers, the more effective it will be.

💡 Use Eye-catching Visuals and Easy-to-Remember Slogans

‍ Use striking visuals and catchy slogans to make your ads memorable. Expedia's video ad is a good example of how using emotions with great visuals and a strong slogan can make a big impact.

💰 Promote Special Offers and Benefits

‍ Don't hesitate to highlight special access, discounts, or special deals, as Amex Travel does. These incentives can be a key factor for people thinking about making a purchase.

➡️ Have a Clear Call-to-Action (CTA)

‍ Your ad should have a straightforward CTA, telling viewers exactly what to do next. Whether it's booking a trip, looking at discounts, or signing up for an email list, make the next step clear.

🍁 Take Advantage of Seasonal Trends

‍ Use seasonal trends and holidays to make your ads feel more timely and relevant. Booking.com's banner ad related to New Year's resolutions is a great example of how to connect with people's mindsets during different seasons and holidays.

By applying these simpler ideas, drawn from the practices of top travel companies, you can create effective travel ads that grab attention, spark interest, and get viewers to engage with your brand.

Unlock Your Potential with Promodo

We know managing ads can be tough. To make a successful campaign, you need strategic approach and creativity. But you don't have to figure it out by yourself. Promodo experts are ready to help you every step of the way, from researching the market and running A/B tests to launching pay-per-click campaigns and analyzing the results. Get in touch with us today, and let's talk about how we can help you reach your goals.

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The only way to visit the DPRK

I recently had the pleasure of visiting the DPRK with Uri Tours. I'd suggest you forget everything you have ever read about the DPRK in the western media. Go there and meet the wonderful people, see the places, do the learning and you'll come away with a different point of view. I spent six days there and it was a TREMENDOUS experience. I am very happy with Uri Tours. The chap who runs it was very responsive to questions, on the case and generally on the same page as me. The whole trip was faultless and seamless. I can't wait to back again and do some different things there. I wouldn't consider any other tour provider.

Date of experience : November 26, 2019

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Consumer Law - 1

Law 19 Quizzes  

1. Through unfair trade practices, Super Sales Company induces Trey and other consumers to enter into one-sided deals. This may be subject to sanctions under

a. federal and state law .

b. federal law only.

c. no law, according to the principles of freedom to contract.

d. state law only.

2. Through careless manufacturing practices, Insta-Market Company makes and sells unsafe products to Jess and other consumers. This may be subject to sanctions under

3. Frosty’s Appliance Store advertises freezers at a “Special Low Price of $299.” When Garth tries to buy one of the freezers, Huey, the salesperson, tells him that they are all sold and no more are obtainable. Huey adds that Frosty’s has other freezers for $2,299. This is

a. a legitimate sales technique.

b. bait-and-switch advertising.

c. counteradvertising.

d. puffery.

4. Orange Company makes computers. The company’s ad states that “if you aren’t eatin’ an Orange, you aren’t gettin’ any ‘C.” ” The Federal Trade Com­mission would consider this ad

a. false and misleading.

b. false only.

c. misleading only.

d. neither false nor misleading.

5. Miracle Products, Inc., engages in de­ceptive advertising when it markets its product Weight-Off as able to help consumers lose weight in their sleep. Miracle is ordered to include in all future adver­tising of Weight-Off the statement, “Weight-Off will not cause anyone to lose weight in their sleep.” This is

a. a counteradvertising order.

b. a multiple product order.

c. bait-and-switch advertising.

d. excessive abuse of authority.

6. Precise GPS Company’s ad states that its product is “the finest that money can buy.” Because of this ad, the Federal Trade Com­mission is most likely to issue

a. a cease-and-desist order only.

b. a cease-and-desist order or a counteradvertising order.

c. a counteradvertising order only.

d. neither a cease-and-desist order nor a counteradvertising order.

7. Vanna and many other consumers complain to the Federal Trade Commission (FTC) that a Whoopie Wonders Company ad is deceptive. The FTC’s first step is to

a. draft a formal complaint .

b. investigate.

c. issue a cease-and-desist order.

d. require counteradvertising.

8. Cleaners & Solvents, Inc. (CSI), engages in de­ceptive advertising when it markets its product Dirt Remover as able to kill germs over long periods of time. In an action against CSI regarding Dirt Remover, the firm is ordered to stop its false advertis­ing of Dirt Remover and other products. This is

9. Consumer Products, Inc. (CPI), in its ads, makes claims about its prod­ucts that are obvious exaggerations and claims that are false but appear to be true. CPI may be subject to sanctions for

a. neither the false claims nor the obvious exaggerations.

b. only the false claims.

c. only the obvious exaggerations.

d. the false claims and the obvious exaggerations.

10. GR8 Fashion, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Hott Clothes Company, GR8’s competitor. The FTC investigates and concludes that the ad is deceptive. The FTC’s next step is to

a. conduct negotiations between the competitors.

b. draft a formal complaint .

d. permit A to broadcast similarly deceptive counteradvertising.

11. Penny Stock Company faxes ads to Quality Personnel Corporation and other businesses without the recipients’ permission. This is

a. illegal .

b. legal and smart because such ads are generally cheap.

c. legal but not smart because such ads are generally ineffective.

d. legal but only potentially smart, depending on the response rate.

12. Travel Tours Company faxes ads to Uri and other individual consumers without the recipients’ permission. This is subject to

a. a cease-and-desist order by the Federal Trade Commission.

b. no sanctions.

c. possible fines by the Federal Communications Commission .

d. rescission on the order of the Federal Reserve Board.

13. To generate sales, Yakkity-Yak, Inc., uses phone solicitation. Under federal law and Federal Trade Commission regulations, in soliciting business, Yakkity-Yak’s telemarketers must

a. disclose all material facts related to a sale.

b. identify the seller’s name (only if asked).

c. refrain from calling consumers who have not requested a call.

d. speak clearly and conspicuously .

14. Like other manufacturers and sellers, Useful Products Company packages its products with labels. Under federal law, such labels must be

a. accurate and use easily understood words.

b. bright and feature eye-catching colors.

c. graphically distinctive and well-designed.

d. interesting and revealing to the average consumer .

15. Like other manufacturers and sellers, Peoples Products Corporation labels its goods. Federal labeling and packaging rules are enforced by the Federal Trade Commission and

a. the U.S. Department of Commerce.

b. the U.S. Department of Health and Human Services.

c. the U.S. Department of Justice.

d. the U.S. Department of the Treasury.

16. Ron signs a contract with Sam, a door-to-door salesperson for Tutors, Inc., to buy a foreign-language course. To cancel the contract, Ron has up to

a. three days.

b. thirty days.

c. sixty days.

d. ninety days.

17. Special Roast Coffee, Inc., processes and sells a variety of coffee products. Special Roast’s product packages must include

a. neither the contents’ net quantity nor the product’s identity.

b. the contents’ net quantity and the product’s identity.

c. the contents’ net quantity only.

d. the product’s identity only.

18. Friendly Loan Company extends credit in the ordinary course of its busi­ness. Under the Truth-in-Lending Act, Friendly must inform potential borrowers of

a. credit terms offered by other lenders and its own credit terms.

b. only credit terms offered by other lenders.

c. only its own credit terms.

d. only the credit terms that will convince borrowers to “close the deal.”

19. Luscious Treats, Inc., wants to market a new snack food. On the prod­uct’s la­bel, standard nutrition facts are

a. mandated by the U.S. Chamber of Commerce.

b. required by the Nutrition Labeling and Education Act.

c. strictly voluntary.

d. warranted by the nature of the food.

20. Brad borrows $20,000 from City Bank to repair his home and to buy a car. Brad buys a stereo from Delta Discount Store in a transaction financed by Delta. If these parties are subject to the Truth-in-Lending Act, Regulation Z ap­plies to

a. the car loan only.

b. the home repair loan only.

c. the retail installment sale only.

d. the car loan, the home repair loan, and the retail installment sale.

How To Create Impactful Travel Business Marketing Ads For Different Platforms

• Social Media

In 2023, digital ads are predicted to account for more than 66% of the total spend on global advertising. This goes to show just how impactful online advertising is, and how so many companies use it for increasing sales and revenue growth.

If you want to reach new customers fast, then running travel business marketing ads is the best way to do so.

A major benefit of running paid ad campaigns is that you can target the right audience and ensure that your business and booking pages are front and center of their buying journey.

And with so many different advertising channels and formats to choose from, you can be very specific about how you attract customers through travel advertising.

Not sure where to start? This guide will cover everything you need to know about preparing your first ad campaign.

What To Consider Before Pursuing Travel Advertising 

Before you start running travel business marketing ads, it's important to take a number of key considerations into account. This will help you create ads that are more effectively targeted in order to achieve a better ROI.

Know Your Audience 

First, you need to have a clear understanding of who your target audience is. This is essential if your ads are going to reach the right people.

The great thing about running online ads is that you can access very detailed targeting options. This means you can be highly specific about what demographics, interests, and locations your ads display.

Start by understanding exactly who your prospective customers are. The best way to do this is to create detailed customer personas that outline elements like the target customers' age, location, interests, income, pain points, and more.

This way, you’ll be able to target the ads so that only relevant people see them. This will help your campaigns achieve e a better ROI.

Understand Your Target Audience’s Behavior 

You’ll also need to have a clear sense of how your target audience consumes information online. This is necessary for choosing the right platforms to run travel advertising campaigns on.

An important aspect of this is understanding the customer journey and the different steps they would take from discovering your brand to becoming a customer. If you focus your ads on platforms where your audience isn't active, your ads won't end up driving conversions.

Being Aware Of Your Ad Budget 

Paid advertising campaigns cost money, so you need to set aside a clear budget accordingly. Of course, your aim is to generate more money from the campaigns than they cost, i.e, to achieve a positive ROI.

Understand the different ways you pay for ads (usually PPC ), and establish a budget for this. You should also be clear on what your ideal return on investment would be for your ads to be profitable.

Best Types Of Travel Business Marketing Ads 

The great thing about travel business marketing ads is that you have loads of different platforms and ad formats to choose from. This gives you plenty of options for effectively targeting your ideal customers, regardless of what their online habits are.

Let’s break down some of the best platforms and ad formats that travel businesses can use.

Google Ads 

When it comes to online advertising, Google Ads remain the most popular. This makes sense seeing as Google is generally the first place people will go to to discover businesses or experiences.

Google offers a variety of different ad formats:

Search Ads 

These are the text ads that display at the top of Google search results. You bid on relevant keywords to have these ads displayed.

Display Ads 

These are ads that include images that display on other websites outside of the search engine.

Video Ads 

Video ads that appear on YouTube (more on this later).

Shopping Ads 

Ads that list products on Google search.

Local Ads 

Ads on Google that send customers to a physical location.

Smart Ads 

Automated ad campaigns that run on Google and across the web.

Discovery Ads 

These ads run across Google’s different feeds.

For travel business marketing ads, the best approach is generally search ads. These are the most common forms of Google ads, and they display similarly to regular Google search results.

Using these ads is a fast way of reaching the top of the SERP.

Your ideal customers are probably going onto Google and searching for something along the lines of “kayak tour near me”. Being savvy about the relevant target keywords can help your ad appear on top of this search query. This is a highly effective way to attract a lot more customers.

Facebook Ads 

Facebook Ads are an extremely popular option for running travel ad campaigns. Consider how much data Facebook holds on its users. This gives you a lot of room to be really specific about how you're going to target the right people.

Many different types of Facebook ad campaigns exist, such as:

Image Ads 

Image ads include a still image with a CTA.

This refers to a video with a CTA.

Instant Experience Ads 

Full-screen ads that include interactive, multimedia options.

Carousel Ads 

Ads that can feature up to 10 images and videos in a swipe-through carousel format, including a CTA.

Lead Ads 

Ads that include a lead generation form to collect email addresses.

Dynamic Ads  

Personalized ads that connect your product catalog with your Facebook Events Manager and Facebook Pixel. This lets you display ad content to users who also viewed the page or product on your website.

Stories Ads 

Ads that appear inside Facebook Stories.

Messenger Ads 

Ads displayed in Facebook Messenger. You can also use these on Instagram and Whatsapp.

Image ads, video ads, and carousel ads are some of the best options for travel businesses, as they let you display your travel experiences in an eye-catching and engaging format. Be sure to use a relevant CTA (like “Book Now”) to increase your conversions.

YouTube Ads 

YouTube is owned by Google, so YouTube Ads are Google video ads (as mentioned above).

Video is the most engaging form of content. Running video ads can be a practical way to grab the viewer's attention. It also lets you display a lot more than images. For travel businesses, this gives you the ideal opportunity to show off your travel experiences and destinations to entice users into booking tours.

Running these ads isn't as easy as other formats, as you’ll need to create quality video content. Bidding on video ads can also get expensive.

Instagram Ads 

Instagram is owned by Meta, so Instagram ads and Facebook ads are managed through the same platform. If you run ads on Facebook, those ads can also run on Instagram at the same time.

Instagram and Facebook ads work in much the same way. Although Instagram also offers ads for its unique features, like Reel Ads, Stories Ads, and Shopping Ads.

It's important to understand your audience and how they interact with each different platform in order for your ads to be most effective.

Twitter Ads 

If your target customers are on Twitter, this could also be a compelling medium for running paid ad campaigns. Twitter lets you run ads in a few different formats, including:

These ads look like standard text-based Tweets.

A single image is displayed in the ad.

These are ads that display a video.

Up to six images are displayed in a swipe-through carousel format.

Moment Ads 

This option allows you to curate a collection of Tweets to tell a story.

Retargeting Ads 

Retargeting is a type of ad strategy that can be run on Google Ads and Facebook Ads. The idea is to show relevant content to people who have already interacted with your website.

For example, a person visits your site, looks at a tour page, and then leaves. You can run retargeting ads (powered by tracking pixels), to then display an ad for that same tour page to the user on different websites.

This is a fantastic strategy for selling more tours, as the people who see retargeting ads have already shown an interest in your business, so they’re more likely to make a purchase.

Tips For Creating Travel Business Marketing Ads 

Once you’ve established what ad platform is best for your travel business, you’ll need to make sure your ads stand out.

Here are a few tips and tactics to keep in mind when creating your ad campaigns.

Use A Compelling CTA 

This is an essential rule for any effective ad campaign, regardless of the platform or ad format you're using.

Your ad exists to drive conversions and to achieve that you need to have a clear call to action (CTA). make sure this CTA is simple and compelling, and that it makes sense for your ad campaign goals.

Optimize Your URL 

It’s crucial that you use a URL for your ad campaigns that align with your ad messaging and CTA. If you're running search ads, the user won't be very interested if they see a long URL that doesn't seem relevant. Make sure that your URL structure aligns with the objective the user has.

Optimize Your Landing Page For Conversions 

Your ad may be the ultimate tool for attracting a lot of clicks and driving traffic to your landing page. However, none of this will matter if your landing page isn't properly optimized for conversions.

Make sure the page you send traffic to is relevant to your ad, and that it includes all of the details and information a user will be looking for. Make sure your CTA is clear, and that you don't require too much information from the user in any forms on the page.

This will most likely be your tour booking page. By using the right travel booking software , you’ll be able to create a more optimized booking page for a better user experience.

Make Your Ads Visually Appealing 

Your ads should stand out and be visually appealing. If you're running social media ads, your goal is to stop people from scrolling and grabbing their attention.

This means you should try to include strong visual elements, and refrain from making your ads too text-heavy. Try to clearly communicate the value of your ad in a line or two.

If you run video ads, keep the videos short and try to grab attention from the first second.

If you're running text-based search ads, be very careful about creating your headline. This needs to be simple, but impactful.

Test Your Ads 

A recommended strategy for running travel business marketing ads is to test, update, and optimize your ads.

By running A/B tests on your ads, you’ll be able to implement the most effective ads that offer the best conversion rates and ROI. The more you test and optimize, the better your ad performance will be.

Conclusion 

With the right travel business marketing ads, you’ll be able to attract a lot more customers and generate more sales. Once you establish what ads make the most sense for your marketing goals and target audience, it is a highly effective way to increase your tour bookings.

If you're looking for more travel industry tips and resources, then take a look at WeTravel Academy . We have created an extensive library of guides, courses, webinars, articles, and more, to help travel industry professionals grow their businesses.

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