Federal advertising laws require all ads to be truthful.
As an advertiser, violating federal laws regarding truth in advertising carries stiff penalties. As a consumer, you have the right to recourse if you're a victim of an advertising violation.
Purpose
Truth-in-advertising laws protect consumers from misleading ads and unfair business practices.
Truth-in-advertising regulations protect consumers from false or misleading advertising. These laws require advertisers to tell the truth about products and to be able to prove claims. If you've fallen victim to advertising violations, the law allows you to report your complaint and seek remediation.
Governing Agency
The Federal Trade Commission (FTC) enforces advertising regulations through the Federal Trade Commission Act.
Guidelines
Advertisers must be able to back up claims about their products.
The law requires advertising to be truthful and non-deceptive, for advertisers to have evidence to back up their claims and that advertisements not be unfair.
Violations
If you've been wronged by deceptive or unfair advertising, you can seek justice through the federal government.
An ad is deceptive if misleading statements or omitted information affect a consumer's purchasing decision or product use. An ad or business practice is unfair if it causes unavoidable consumer injury that is not outweighed by the benefit. If you're a victim of such practices, file a complaint with the FTC or Better Business Bureau (BBB).
Penalties
If you're caught violating advertising laws, you could pay heavy fines.
If you violate advertising laws, the FTC may order you to stop the ads in question, to pay fines and give customer refunds, and to place new ads to correct misinformation.
Help in Compliance
The FTC will not clear ads in advance. Review the Information on the FTC website to help guide you in compliance. You can also check with the BBB for tips on truthful advertising.
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