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What Evidence Must a Company Have to Support the Claims in its Ads?

What Evidence Must a Company Have to Support the Claims in its Ads? Before a company runs an ad, it has to have a "reasonable basis" for the claims. A "reasonable basis" means objective evidence that supports the claim. The kind of evidence depends on the claim. At a minimum, an advertiser must...

What is the Consumer Review Fairness Act ("CRFA")?

What is the Consumer Review Fairness Act ("CRFA")? The Consumer Review Fairness Act protects consumers’ ability to share their honest opinions about a business’s products, services, or conduct in any forum – and that includes social media. The FTC has tips to help your company comply with the law...

What is the Restore Online Shopper’s Confidence Act ("ROSCA")?

What is the Restore Online Shopper’s Confidence Act ("ROSCA")? This Act prohibits any post-transaction third party seller (a seller who markets goods or services online through an initial merchant after a consumer has initiated a transaction with that merchant) from charging any financial account...

What kind of Advertising Claims Does the FTC Focus On?

What kind of Advertising Claims Does the FTC Focus On? The FTC pays closest attention to: • Ads that make claims about health or safety, such as: - ABC Sunscreen will reduce the risk of skin cancer. - ABC Water Filters remove harmful chemicals from tap water. - ABC Chainsaw's safety latch reduces...

What Makes an Advertisement Deceptive?

What Makes an Advertisement Deceptive? According to the FTC's Deception Policy Statement, an ad is deceptive if it contains a statement - or omits information - that: • Is likely to mislead consumers acting reasonably under the circumstances; and • Is "material" - that is, important to a consumer's...

What Makes an Advertisement Unfair?

What Makes an Advertisement Unfair? According to the Federal Trade Commission Act and the FTC's Unfairness Policy Statement, an ad or business practice is unfair if: • it causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid; and • it is not outweighed...

What Notices Need to be Posted on My Website if I am an Advertiser?

What Notices Need to be Posted on My Website if I am an Advertiser? 1. Privacy Policy 2. Terms of Use 3. DMCA Notice 4. Contact Us 5. Email Opt-Out Mechanism Stay Ahead of the Curve! Explore our comprehensive CLIC law Marketing Compliance Library for in-depth resources and insights.

What Penalties Can be Imposed Against a Company that Runs a False or Deceptive Ad?

What Penalties Can be Imposed Against a Company that Runs a False or Deceptive Ad? The penalties depend on the nature of the violation. The remedies that the FTC or the courts have imposed include: • Cease and desist orders. These legally-binding orders require companies to stop running the...

What Rules Apply to Ads for Franchises or Business Opportunities?

What Rules Apply to Ads for Franchises or Business Opportunities? The FTC's Trade Regulation Rule on Franchises and Business Opportunities ("Franchise Rule") governs the sale of franchises and business opportunities. The law requires sellers to make specific disclosures, give prospective buyers a...

What Specific Conduct is Prohibited by the Consumer Review Fairness Act statute?

What Specific Conduct is Prohibited by the Consumer Review Fairness Act statute? The Consumer Review Fairness Act makes it illegal for companies to include standardized provisions that threaten or penalize people for posting honest reviews. For example, in an online transaction, it would be illegal...

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