Questions: Krenning Realty has been found guilty of running deceptive ads. Which of these statements about the potential penalty is true? Krenning must reach out to consumers harmed by the ads, but won't need to run corrective advertising. Krenning's broker may face jail time. The firm may face civil penalties ranging from the thousands to millions of dollars, depending on the infraction. The only real penalty will be a cease and desist order.

The answer is: The firm may face civil penalties ranging from the thousands to millions of dollars, depending on the infraction.

This statement is not necessarily true. While reaching out to consumers may be part of a settlement or penalty, corrective advertising is a common remedy in cases of deceptive advertising, depending on the severity and impact of the deception.

This is unlikely in cases of deceptive advertising unless there is evidence of criminal fraud or other criminal activities. Typically, penalties for deceptive advertising are civil rather than criminal.

This statement is true. Civil penalties for deceptive advertising can vary widely based on the nature and extent of the infraction, the jurisdiction, and the specific laws violated. Penalties can indeed range from thousands to millions of dollars.

This statement is not true. While a cease and desist order is a common remedy, it is often accompanied by other penalties such as fines, restitution, or corrective advertising, especially in cases of significant consumer harm.