When preparing advertising materials for your company, or hiring an agency to design them, keep in mind the three basic laws that are enforced by federal and state government agencies:
If you violate these rules, you could be liable for expensive fines and other legal sanctions.
The Federal Trade Commission (FTC) has jurisdiction over the advertising of most products and services, but other government agencies can also get involved. For example, the Food and Drug Administration monitors products with medicinal benefits. And disputes are sometimes resolved by state and local consumer agencies or private groups such as the Better Business Bureau.
How does the FTC determine if an ad is deceptive? If a complaint is filed by a customer or competitor, regulators look at the material from the point of view of a "reasonable consumer."
Here are the highlights of what the FTC looks for when it investigates advertising:
The law requires you to have sufficient evidence to back any claims you make in an ad before it runs. The exact evidence depends on the claim. The FTC uses the example of a pain reliever claim that "two out of three doctors" recommend the product. A reliable survey must be done to support such a statement.
In most cases, the FTC insists health or safety claims must be supported by "competent and reliable scientific evidence — tests, studies, or other scientific evidence that has been evaluated by people qualified to review it."
If you have questions about the legality of your advertising program, consult with an attorney. Getting the word out about your products or services is essential to the success of your business — but a badly-worded advertisement can do more harm than good.
The FTC says it pays less attention to ads making "subjective claims or claims that consumers can judge for themselves." For example, an ad that states a food product "tastes great." On the other hand, federal regulators pay close attention to:
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