Advertising and Promotions Managers Federal Regulations
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Jan 16, 2024

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19 Min Read

1. What are the main responsibilities of Advertising and Promotions Managers federally regulated?


According to the US Bureau of Labor Statistics (BLS), Advertising and Promotions Managers are responsible for planning, directing, and coordinating advertising policies and programs or producing collateral materials to promote products or services.

More specifically, their main responsibilities include:

1. Developing advertising strategies: Advertising and Promotions Managers are responsible for creating and implementing effective advertising campaigns that target specific audiences and achieve business objectives.

2. Identifying target markets: They conduct market research to identify the most profitable markets for their products or services. This includes analyzing consumer demographics, behaviors, and preferences.

3. Setting budgets: They determine how much to spend on advertising campaigns based on the available budget and projected returns.

4. Collaborating with creative teams: Advertising and Promotions Managers work closely with creative teams such as copywriters and graphic designers to develop marketing materials that effectively communicate the key messages of the campaign.

5. Negotiating contracts: They negotiate with media outlets and publishers to secure ad space at competitive rates.

6. Monitoring campaign performance: Advertising and Promotions Managers track the success of their campaigns through various metrics such as sales figures, website traffic, and brand awareness levels. They use this data to make necessary adjustments to improve campaign effectiveness.

7. Compliance with regulations: In federally regulated industries such as pharmaceuticals or alcohol, Advertising and Promotions Managers must ensure that all marketing materials adhere to strict regulations set by government agencies.

8. Brand management: They are responsible for maintaining a positive image of their company or brand through effective messaging in advertisements.

9. Overseeing promotions: In addition to traditional advertising, they may also plan promotional events or sponsorships as part of a larger marketing strategy.

10. Training staff: Some Advertising and Promotions Managers may also train sales or promotional staff on how best to present marketing materials in order to maximize results.

2. How does federal regulation impact the advertising and promotions industry?


Federal regulation impacts the advertising and promotions industry in several ways.

1. Truth in Advertising: The Federal Trade Commission (FTC) is responsible for enforcing laws that prevent deceptive or unfair advertising practices. This includes ensuring that advertisements are truthful, accurate, and not misleading to consumers. Advertisers must be able to substantiate any claims they make in their ads, and failure to do so can result in penalties or fines.

2. Protection of Children: The FTC also has specific regulations aimed at protecting children from false or deceptive advertising. This includes restrictions on marketing certain products to children, such as tobacco and alcohol, as well as requiring clear disclosure of commercial content in children’s programming.

3. Consumer Privacy: The FTC also enforces laws related to consumer privacy, particularly when it comes to online advertising. In order to protect consumer information and prevent intrusive tracking or targeting, the FTC has developed regulations such as the Children’s Online Privacy Protection Act (COPPA) and the Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) Act.

4. Industry-specific Regulations: Some industries, such as pharmaceuticals and alcohol, have additional federal regulations that impact their advertising and promotional campaigns. These regulations may dictate what type of messaging can be used, who can be targeted with ads, and any required disclosures or warnings.

5. Intellectual Property Protection: Federal agencies like the United States Patent and Trademark Office (USPTO) help regulate the use of intellectual property in advertising by issuing trademarks and patents for original logos, slogans, inventions, etc.

6. Financial Reporting Requirements: Publicly-traded companies in the advertising industry must comply with federal financial reporting requirements enforced by agencies like the Securities and Exchange Commission (SEC). These regulations aim to maintain transparency and accountability within the industry.

In summary, federal regulation plays a crucial role in promoting fair competition, protecting consumers’ interests, maintaining ethical standards, and ensuring compliance within the advertising and promotions industry.

3. What laws or regulations do Advertising and Promotions Managers need to be aware of when creating campaigns?


Advertising and Promotions Managers need to be aware of a variety of laws and regulations when creating campaigns, including:

1. Federal Trade Commission (FTC) Regulations: The FTC oversees advertising practices in the United States and has guidelines related to deception, unfairness, and truthfulness in advertising.

2. Federal Communications Commission (FCC) Regulations: The FCC regulates advertising on radio and television broadcasts, including rules on disclosure of sponsored content.

3. Truth in Advertising Laws: These laws require that advertisements be truthful and not misleading, including disclosing material information that could affect a consumer’s buying decision.

4. Children’s Advertising Laws: The Children’s Online Privacy Protection Act (COPPA) protects the online privacy of children under 13 years old and requires parental consent for collecting personal information from children.

5. CAN-SPAM Act: This law establishes requirements for commercial email messages, including providing recipients with an option to unsubscribe from future emails.

6. State Consumer Protection Laws: Some states have additional or stricter laws governing advertising practices within their borders.

7. Intellectual Property Laws: Advertising materials must not infringe on the intellectual property rights of others, such as trademarks or copyrights.

8. Ethics Codes by Professional Organizations: Promotional activities should align with the ethical standards set by professional organizations, such as the American Marketing Association or the International Advertising Association.

9. Health Claims and Restrictions: The Food and Drug Administration (FDA) regulates advertisements for food, drugs, medical devices, cosmetics, dietary supplements, and tobacco products to ensure they are safe and accurate.

10. Native Advertising Guidelines: Advertisers must clearly disclose native ads, meaning ads that resemble editorial content or user-generated content but are paid for by a sponsor.

4. How do federal regulations affect the language and imagery used in advertisements?


Federal regulations can have a significant impact on the language and imagery used in advertisements. There are several ways in which federal regulations can influence the content of advertising:

1. Truth in Advertising Laws: The Federal Trade Commission (FTC) enforces laws that require all advertising to be truthful and not misleading. This means that advertisers must provide accurate information about their products and services, and cannot make false or exaggerated claims. These laws also regulate the use of endorsements and testimonials, requiring them to be authentic and representative of typical results.

2. Health Claims: The Food and Drug Administration (FDA) regulates health claims made in advertisements for food, drugs, and dietary supplements. Advertisers must have scientific evidence to support any health claims they make, or the FDA can take legal action against them.

3. Tobacco and Alcohol Advertising: Federal regulations heavily restrict the advertising of tobacco and alcohol products. Tobacco advertisements are banned from television and radio, while alcohol ads are subject to specific guidelines regarding content and placement.

4. Discriminatory Language: The Equal Employment Opportunity Commission prohibits discriminatory language in job advertisements based on race, color, religion, sex, national origin, age, disability, or genetic information.

These regulatory bodies closely monitor advertisements to ensure they comply with these laws. If an advertisement is found to violate these regulatory laws, the advertiser may face legal consequences such as fines or having the ad taken down.

As a result of these regulations, advertisers must carefully consider their language and imagery when creating ads to avoid any potential violations. They often turn to creative methods such as using disclaimers or fine print statements to avoid making misleading claims or endorsements. Additionally, certain words or images may be avoided altogether to comply with regulations around discrimination or promoting unhealthy behaviors.

In some cases, federal regulations may also impact advertising strategies as companies may choose not to advertise certain products due to strict regulations or opt for more subtle messaging rather than explicit claims.

Overall, federal regulations play a significant role in shaping the language and imagery used in advertisements to ensure that they are truthful and compliant with laws.

5. Can a company face legal consequences for violating federal advertising regulations?


Yes, a company can face legal consequences for violating federal advertising regulations. The Federal Trade Commission (FTC) is responsible for enforcing federal advertising regulations, and they have the authority to take legal action against companies that engage in deceptive or unfair advertising practices. This can include fines, injunctions, or other penalties. The degree of consequences will depend on the severity and frequency of the violation, as well as the impact it has on consumers. In some cases, a company may also face private lawsuits from individuals who have been harmed by false or misleading advertising. It is important for companies to comply with federal advertising regulations to avoid potential legal consequences and protect their reputation and credibility with consumers.

6. How does the Federal Trade Commission (FTC) play a role in regulating advertising practices?


The Federal Trade Commission (FTC) is an independent agency of the United States government that is responsible for protecting consumers from deceptive and unfair business practices. In relation to advertising, the FTC plays a key role in regulating advertising practices through its enforcement of federal laws such as the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices in commerce.

Some specific ways in which the FTC regulates advertising practices include:

1. Monitoring and investigating advertisements: The FTC actively monitors advertisements across various media platforms to identify any deceptive or misleading claims. They may conduct investigations into specific industries or types of products if they receive numerous consumer complaints.

2. Enforcing truth-in-advertising laws: The FTC enforces truth-in-advertising laws, which require that advertisements must be truthful, not misleading, and backed by evidence if they make objective claims about a product or service.

3. Taking action against false or deceptive ads: If the FTC determines that an advertisement is false or deceptive, it can take legal action against the advertiser and order them to cease using the ad.

4. Requiring disclosures and disclaimers: In cases where an ad makes a claim that may be technically true but could still mislead consumers, the FTC may require the advertiser to include clear disclosures or disclaimers to prevent confusion.

5. Enforcing regulations on endorsements and testimonials: The FTC has guidelines for endorsements and testimonials in advertisements, requiring that they be truthful and not misleading. Advertisers must also disclose any material connections between endorsers/testimonials and the products or services being promoted.

Overall, through its regulatory and enforcement powers, the FTC works to promote fair competition among businesses while ensuring that consumers are protected from dishonest advertising practices.

7. Are there specific regulations for advertising in certain industries, such as healthcare or finance?

Yes, there are specific regulations for advertising in industries such as healthcare and finance.

In healthcare, advertising is regulated by the Food and Drug Administration (FDA) and the Federal Trade Commission (FTC). The FDA regulates advertising for prescription drugs, over-the-counter drugs, medical devices, dietary supplements, and other health-related products. Advertisements must be truthful and not misleading, and must include accurate information about risks and benefits. Additionally, advertisements for prescription drugs must be approved by the FDA before they can be broadcast or published.

In the finance industry, advertising is regulated by several agencies including the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Consumer Financial Protection Bureau (CFPB). These agencies regulate various aspects of financial advertising, including disclosure requirements, false or misleading statements, and suitability of investment recommendations.

Additionally, industries such as alcohol, tobacco, gambling, and firearms also have their own specific regulations for advertising.

8. Do companies have to obtain any special licenses or permits for their advertising and promotional activities?

Yes, companies may be required to obtain special licenses or permits for their advertising and promotional activities, depending on the specific nature of their campaigns and the regulations in their jurisdiction. For example, certain industries such as pharmaceuticals, tobacco, and liquor may have stricter regulations on advertising and require special licenses or permits. Additionally, companies may need permits for specific types of advertising, such as billboards or outdoor signage. It is important for companies to research and comply with all applicable laws and regulations before launching any advertising or promotional activities.

9. Are there any restrictions on targeting minors with advertisements under federal regulations?

Yes, there are restrictions on targeting minors with advertisements under federal regulations. The Children’s Online Privacy Protection Act (COPPA) regulates how personal information from children under the age of 13 can be collected and used by websites and online services that target them. This includes restrictions on targeted advertising to minors without verifiable parental consent. Additionally, the Federal Trade Commission (FTC) has guidelines for advertising to children that focus on truthfulness, fairness, and age-appropriate content. Advertisers must also comply with regulations or self-regulatory guidelines set by industry organizations such as the Children’s Advertising Review Unit (CARU) and the Digital Advertising Alliance (DAA).

10. How are privacy concerns addressed in advertising regulations at the federal level?


Privacy concerns are addressed in advertising regulations at the federal level through various laws and agencies, including:

1. Federal Trade Commission (FTC) – The FTC is responsible for enforcing truth-in-advertising laws and protecting consumers from deceptive or unfair practices. It has the authority to take action against businesses that violate consumer privacy rights.

2. Children’s Online Privacy Protection Act (COPPA) – This law requires companies to obtain parental consent before collecting personal information from children under 13 years old. It also limits certain types of online advertising targeting children.

3. Telephone Consumer Protection Act (TCPA) – The TCPA prohibits telemarketers from making unsolicited calls or sending text messages to consumers without prior consent.

4. Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) Act – CAN-SPAM regulates commercial emails and requires businesses to provide an opt-out option for receiving future emails.

5. Fair Credit Reporting Act (FCRA) – This law regulates how consumer credit information is collected, used, and shared by credit reporting agencies and businesses.

6. Health Insurance Portability and Accountability Act (HIPAA) – HIPAA protects the privacy of personal health information and sets guidelines for how this information can be used in marketing efforts.

7. Digital Advertising Alliance’s Self-Regulatory Principles – The DAA has established a set of guidelines for online behavioral advertising that includes transparency and choice for consumers regarding the collection and use of their data.

Overall, federal regulations aim to protect consumer privacy by limiting what personal information can be collected, how it can be used, and giving consumers control over their data through opt-out options and consent requirements.

11. Can an individual file a complaint against a company for false or misleading advertising under federal regulations?

Yes, an individual can file a complaint against a company for false or misleading advertising under the Federal Trade Commission (FTC) regulations. The FTC is responsible for enforcing federal regulations regarding truthfulness in advertising and protecting consumers from deceptive or unfair business practices. Individuals can file a complaint online through the FTC’s Complaint Assistant or by calling the FTC’s Consumer Response Center at 1-877-FTC-HELP (1-877-382-4357).

12. Is there a set code of ethics that Advertising and Promotions Managers must adhere to under federal regulations?


There is no set code of ethics specifically for Advertising and Promotions Managers that is mandated by federal regulations. However, many companies and industries have their own codes of ethical conduct that employees, including managers, are expected to follow.

Some examples of industry codes of ethics for advertising and promotions include the American Advertising Federation’s code of ethics and the Interactive Advertising Bureau’s code of conduct. These codes often cover topics such as honesty in advertising, transparency in communication with customers, and responsible use of consumer data.

In addition to industry-specific codes, Advertising and Promotions Managers must also adhere to general ethical principles such as avoiding deceptive or false advertising practices and complying with laws and regulations related to advertising. Violations of these ethical standards can result in legal consequences for both the manager and the company they represent.

13. What steps can Advertising and Promotions Managers take to ensure compliance with federal advertising laws and regulations?

1. Stay updated on new and existing laws and regulations: Advertising and Promotions Managers should always stay informed about the latest changes in advertising laws and regulations at the federal level.

2. Develop a thorough understanding of FTC guidelines: The Federal Trade Commission (FTC) is responsible for enforcing federal advertising laws, so it’s important for managers to familiarize themselves with their guidelines, which can be found on the FTC website.

3. Conduct regular compliance training: It’s essential for all employees involved in creating and reviewing advertisements to receive training on federal advertising laws and regulations. This will ensure that everyone is aware of their responsibilities and can help prevent any potential violations.

4. Establish clear internal policies: Developing clear internal policies that outline what is acceptable in advertising and what is not can help ensure compliance with federal laws. These policies should also include procedures for obtaining necessary approvals before running an ad.

5. Use only truthful, accurate, and non-deceptive advertising: The FTC requires that all ads be truthful, accurate, and not misleading to consumers. Managers should review all ads to make sure they meet this standard before they are released.

6. Include all required disclosures: Certain industries may have specific legal requirements for advertising, such as including certain disclosures or disclaimers in their ads. It’s important to understand these requirements and ensure they are included in advertisements as needed.

7. Monitor employee activities: Managers should monitor employee actions related to creating or approving advertisements to catch any potential violations early on.

8. Work closely with legal counsel: In some cases, it may be beneficial to seek guidance from legal counsel when creating or reviewing advertisements to ensure they comply with federal laws.

9. Conduct regular audits of advertising materials: Regularly reviewing past advertisements can help identify any potential issues or patterns of non-compliance that need to be addressed.

10. Respond promptly to any consumer complaints or inquiries: If a consumer reaches out with concerns about an advertisement, it’s important to address them promptly and take steps to rectify any issues.

11. Stay aware of industry codes and standards: In addition to federal laws, many industries have their own codes and standards for advertising. Managers should be familiar with these guidelines and ensure their ads comply with them as well.

12. Keep thorough records: It’s important to keep records of all advertising materials, including any changes made during the review process. These records can be helpful in case of a compliance issue or investigation.

13. Regularly review policies and procedures: As laws and regulations are constantly evolving, it’s important for managers to regularly review and update internal policies and procedures to ensure compliance with current laws.

14. Are there any limitations on the use of endorsements or testimonials in advertisements under federal regulation?


Yes, there are several limitations on the use of endorsements or testimonials in advertisements under federal regulation:

1. Endorsements must be truthful and not misleading: The Federal Trade Commission (FTC) requires that all endorsements reflect the honest opinion, findings, beliefs, or experience of the endorser. They cannot make false or unsubstantiated claims about a product or service.

2. Endorsers must disclose their relationship with the advertiser: If an individual is being compensated in any way for their endorsement (e.g. receiving free products, payment), they must clearly disclose this fact in their endorsement.

3. Endorsing celebrities must actually use the product: A celebrity must have used and had a positive experience with the product or service before endorsing it. If they have not used it, they must disclose that fact.

4. Testimonials must represent the typical consumer experience: Testimonials should generally reflect what a typical customer can expect to achieve by using the product or service being advertised.

5. Advertisers cannot manipulate endorsements: Advertisers cannot falsely claim that an individual has endorsed their product or service when they have not done so.

6. Advertising with expert endorsements requires actual expertise: If an advertisement features an expert giving an opinion on a product or service, that expert must genuinely possess relevant expertise to make such claims.

7. Social media endorsements must follow FTC guidelines: Similar to traditional media outlets, social media influencers are expected to disclose their relationship with advertisers when endorsing products or services.

Failure to comply with these regulations may result in penalties and legal action by the FTC.

15. How do Federal Communications Commission (FCC) rules affect television and radio advertising?


The FCC has specific rules and regulations that govern the content of television and radio advertising. These rules include:

1. Sponsorship Identification: The FCC requires that any paid sponsorship of a program or product must be clearly identified, either visually or orally, at the beginning or end of the advertisement.

2. Deceptive Advertising: The FCC prohibits any false or misleading information in advertisements.

3. Indecent Content: The FCC has restrictions on indecent and obscene material, especially during times when children may be watching or listening.

4. Political Advertising: The FCC has regulations governing political advertising, including equal access and disclosure requirements for political candidates and campaigns.

5. Loud Commercials: In response to consumer complaints about excessively loud commercials, the FCC enacted rules requiring TV stations to keep consistent volume levels between programs and commercials.

6. Children’s Programming Rules: The FCC has specific guidelines for commercial content during children’s programming, including limits on advertising certain products and requiring educational programming to air along with advertisements.

7. Product Placement: The FCC requires that product placement in programs be clearly disclosed to viewers.

8. Emergency Alerts: Television and radio stations are required by the FCC to participate in the Emergency Alert System (EAS), which allows them to disseminate emergency information from federal, state, and local agencies during times of crisis.

Failure to comply with these rules can result in fines and other penalties from the FCC. Advertisers must also ensure that their ads do not violate any state or federal laws related to false or deceptive advertising practices. It is important for advertisers to stay updated on changes in FCC rules and regulations to ensure compliance with advertising standards.

16. Are there specific guidelines for native advertising and sponsored content under federal regulations?


The Federal Trade Commission (FTC) has issued guidelines for native advertising and sponsored content, which are designed to promote transparency and prevent deceptive practices. These guidelines apply to all forms of advertising, including digital media.

Some key guidelines include:

1. Clearly Labeling: Native ads and sponsored content must be clearly labeled as such and not misleadingly resemble editorial content.

2. Prominence: The disclosure must be placed in a prominent location that is easily noticed by consumers without the need for scrolling or clicking on a link.

3. Clarity: The disclosure must use language that is clear and understandable to the average consumer, and avoid industry jargon or terms that could confuse the audience.

4. Visibility: The disclosure should be presented in a way that stands out from the rest of the ad, such as using a different font, color, or style.

5. Proximity: The disclosure should be near the ad’s headline or image, so consumers can easily associate it with the ad.

6. Consistency: Any claims made in the native ad or sponsored content must be consistent with the overall message of the advertisement.

7. Endorsements: If an influencer is being paid to endorse a product or service, they must disclose this relationship clearly and prominently in their post or video.

It is important for advertisers and publishers to comply with these guidelines to avoid misleading consumers and facing potential legal action from the FTC.

17.But who monitors whether companies are following these advertising regulations at the federal level?


The Federal Trade Commission (FTC) is responsible for monitoring and enforcing advertising regulations at the federal level. The FTC has the authority to investigate and take action against companies that violate these regulations. Additionally, consumers can also report potential violations to the FTC for investigation.

18.What penalties can a company face if found to be violating federal adverting standards?

If a company is found to be violating federal advertising standards, they can face significant penalties, including:

1. Fines: The Federal Trade Commission (FTC) can impose fines on companies for false or misleading advertising. These fines can range from thousands to millions of dollars, depending on the severity of the violation.

2. Injunctions: The FTC can also seek an injunction to stop the company from continuing to run the deceptive ad.

3. Corrective advertising: In some cases, the FTC may require the company to run new ads correcting any false or misleading information in their previous ads.

4. Cease and desist orders: A cease and desist order requires a company to stop their deceptive practices immediately and can also include provisions for future monitoring and reporting.

5. Civil penalties: In addition to fines imposed by the FTC, other government agencies such as the Consumer Financial Protection Bureau (CFPB) and Securities and Exchange Commission (SEC) can also impose civil penalties for advertising violations.

6. Criminal charges: In extreme cases, companies may face criminal charges for engaging in fraudulent or deceptive advertising practices.

7. Repercussions from state laws: Companies may also face consequences under state consumer protection laws, which often have stricter regulations than federal laws.

Overall, violating federal advertising standards can have severe consequences for a company’s reputation, financial well-being, and legal standing. It is important for companies to comply with these standards to avoid these penalties.

19.How do changes in technology, such as social media, affect federal advertising regulations?


Changes in technology, such as the rise of social media, have greatly impacted federal advertising regulations. These regulations were originally designed for traditional forms of advertising, such as television and print media, but they are now being applied to the ever-changing landscape of digital marketing.

One major impact is that social media platforms have made it easier for businesses to reach a larger audience at a lower cost. This has resulted in an increase in advertising on these platforms, leading to a need for stricter regulations to protect consumers from false or misleading claims.

In addition, the fast-paced nature of social media makes it easier for advertisements to go viral. This means that any deceptive or harmful content can quickly spread and harm a larger number of people. As a result, federal agencies have had to adapt their regulations to monitor online advertisements more closely and enforce penalties against violators.

Social media also allows for more personalized and targeted advertising, which can be beneficial for both businesses and consumers. However, this also raises concerns about privacy and data collection practices. The Federal Trade Commission (FTC) has issued guidelines for companies on how they should handle consumer data in their online marketing efforts.

Furthermore, with the increase in influencer marketing on social media platforms, the FTC has introduced guidelines requiring influencers to disclose any sponsored content they promote. Failure to do so could result in fines or legal action.

Overall, changes in technology have led to updates and modifications in federal advertising regulations to keep up with the evolving digital landscape and protect consumers from deceptive practices.

20.How does international marketing play a role in navigating federal advertising rules for multinational companies operating in the US?


International marketing plays a crucial role in navigating federal advertising rules for multinational companies operating in the US in several ways:

1. Understanding cultural differences and sensitivities: International marketing teams are well-versed in understanding cultural differences and sensitivities across different markets. This knowledge is essential when navigating federal advertising rules as certain marketing tactics may be acceptable in one country but not in another. By having a deep understanding of these cultural nuances, international marketing teams can ensure that their advertisements comply with federal rules while still resonating with local audiences.

2. Staying updated on regulations: Multinational companies tend to have a presence in multiple countries, each with its own set of advertising regulations. International marketing teams play a critical role in staying updated on these regulations and ensuring that all advertisements comply with the relevant laws and guidelines.

3. Adapting messaging to fit local regulations: In some cases, an advertisement that is acceptable in one country may violate federal rules in another. International marketing teams are skilled at adapting messaging to fit local regulations without losing the essence of the brand’s message or damaging its reputation.

4. Working closely with legal teams: Federal advertising rules can be complex and vary from country-to-country. International marketing teams work closely with legal departments to ensure that all advertisements comply with the relevant laws and guidelines.

5. Conducting thorough research: The highly competitive global marketplace demands that multinational companies conduct extensive research before launching any new advertising campaigns. This includes researching demographics, consumer behaviors, and relevant laws and regulations. International marketing teams bring their expertise to this process, ensuring that campaigns are compliant with all applicable federal advertising rules.

In conclusion, international marketing plays a crucial role in navigating federal advertising rules for multinational companies operating in the US by leveraging their deep cultural understanding, staying current on regulations, adapting messaging to fit local guidelines, working closely with legal teams, and conducting thorough research.

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