Questions & Answers

Are Advertising Agencies Subject to the FTC Act?

Are Advertising Agencies Subject to the FTC Act? Yes. In addition to the advertiser, the advertising agency also may be held legally responsible for misleading claims in ads. Advertising agencies have a duty to make an independent check on the information used to substantiate ad claims. They may...

Are there any Rules about Ads for Contests or Sweepstakes?

Are there any Rules about Ads for Contests or Sweepstakes? Sweepstakes-type promotions that require a purchase by participants are illegal in the United States. Other agencies, including the United States Postal Service (USPS) and the Federal Communications Commission (FCC), also enforce federal...

Are there Rules for Making Energy Savings Claims in Ads?

Are there Rules for Making Energy Savings Claims in Ads? The FTC's Appliance Labeling Rule and the R-Value Rule address energy savings claims for appliances, lighting products, and insulation. For example, under these rules, energy efficiency claims in ads must be based on specific standardized...

Are There Rules for Using Environmental Claims like "Recycled" or "Ozone-Friendly"?

Are There Rules for Using Environmental Claims like "Recycled" or "Ozone-Friendly"? The FTC's Guides for the Use of Environmental Claims cover how words like biodegradable, recyclable, and environmentally friendly can be used in ads. In addition, some states have laws governing environmental claims...

Does the FTC have Rules on Advertisements for Over-the-Counter ("OTC") Drugs?

Does the FTC have Rules on Advertisements for Over-the-Counter ("OTC") Drugs? The FTC handles most matters regarding claims in advertisements for over-the-counter drugs. The Food and Drug Administration (FDA) handles most matters regarding the labeling of OTC drugs. As with any other product,...

Does the FTC have Specific Rules on Advertisements for Prescription Drugs?

Does the FTC have Specific Rules on Advertisements for Prescription Drugs? No. The FDA handles most matters related to the advertising of prescription drugs. For more information about marketing prescription drugs, visit the FDA's website at www.fda.gov or call the FDA Inquiry Line, 1-888-INFO-FDA...

How do I Advertise a Satisfaction Guarantee for a Warranty?

How do I Advertise a Satisfaction Guarantee for a Warranty? The Guides advise that, regardless of the price of the product, advertising terms such as "satisfaction guaranteed" or "money back guarantee" should be used only if the advertiser is willing to provide full refunds to customers when, for...

How Does the FTC Define "Bait and Switch" Advertising?

How Does the FTC Define "Bait and Switch" Advertising? It's illegal to advertise a product when the company has no intention of selling that item, but instead plans to sell a consumer something else, usually at a higher price. For more information, ask the FTC for its Guides Against Bait...

How does the FTC Determine if an Ad is Deceptive?

How does the FTC Determine if an Ad is Deceptive? A typical inquiry follows these steps: • The FTC looks at the ad from the point of view of the "reasonable consumer" - the typical person looking at the ad. Rather than focusing on certain words, the FTC looks at the ad in context - words, phrases,...

How Does the FTC Evaluate Claims for "Health Foods," Vitamins, Dietary Supplements, and Similar Products?

How Does the FTC Evaluate Claims for "Health Foods," Vitamins, Dietary Supplements, and Similar Products? Claims for dietary supplements and similar products must be truthful and advertisers must have substantiation for any objective product claims they make. Ask the FTC for Dietary Supplements: An...

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