Questions & Answers

What Standards Does the FTC Apply When Evaluating Claims in Ads Aimed at Children?

What Standards Does the FTC Apply When Evaluating Claims in Ads Aimed at Children? The FTC pays particular attention to ads aimed at children because children may be more vulnerable to certain kinds of deception. Advertising directed to children is evaluated from a child's point of view, not an...

What Substantiation Does a Company Need to Support its Claims?

What Substantiation Does a Company Need to Support its Claims? Look at your advertising to determine what objective claims you are making. At minimum, the level of proof it says it has. The FTC Policy Statement Regarding Advertising Substantiation makes that clear: “When the substantiation claim is...

What Truth-in-Advertising Rules Apply to Advertisers?

What Truth-in-Advertising Rules Apply to Advertisers? Under the Federal Trade Commission Act: • Advertising must be truthful and non-deceptive; • Advertisers must have evidence to back up their claims; and • Advertisements cannot be unfair. Additional laws apply to ads for specialized products like...

When Advertising Products are sold with a Guarantee or Warranty, What Information Must be Included in the Ads?

When Advertising Products are sold with a Guarantee or Warranty, What Information Must be Included in the Ads? If an ad mentions that a product comes with a guarantee or warranty, the ad should clearly disclose how consumers can get the details. Any conditions or limits on the guarantee or warranty...

When Can a Company Advertise a "Going Out of Business Sale"?

When Can a Company Advertise a "Going Out of Business Sale"? The short answer is: only when a store is going out of business. It would be deceptive to advertise a “going out of business sale” when a store is not going out of business. Stay Ahead of the Curve! Explore our comprehensive CLIC law...

When can a Company Advertise Something as "Free"?

When can a Company Advertise Something as "Free"? When a "free" offer is tied to the purchase of another product, the price of the purchased product should not be increased from its regular price. For more information, ask the FTC for the Guides Concerning Use of the Word "Free" and Other...

When Can you Advertise a Product is "Made in the U.S.A."?

When Can you Advertise a Product is "Made in the U.S.A."? A product has to be "all or virtually all made in the United States" for it to be advertised or labeled as "Made in the U.S.A." For more information, ask the FTC for the Enforcement Policy Statement on U.S. Origin Claims. Stay Ahead of the...

When may a Company Advertise that a Product is "On Sale"?

When may a Company Advertise that a Product is "On Sale"? The same standards for truthfulness apply when a company makes advertising claims about sale prices or products being “on sale.” For more information, ask the FTC for the Guides Against Deceptive Pricing. Since this issue often involves...

Who Enforces Weight Loss Products Advertising?

Who Enforces Weight Loss Products Advertising? The Federal Trade Commission ("FTC"). The FTC has taken action against hundreds of advertisers who have falsely promised easy weight loss. Marketers who promote diet products or services or who make representations about fat loss, weight loss, calorie...

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