What are Clear and Conspicuous Disclosures according to the FTC?

What are Clear and Conspicuous Disclosures according to the FTC?

There is no set formula for a clear and conspicuous disclosure; it depends on the information that must be provided and the nature of the advertisement.  Some disclosures are quite short, while other are more detailed.  Some ads use only text, while others use graphics, video, or audio or combinations thereof.  Advertisers have the flexibility to be creative in designing their ads, as long as necessary information is communicated effectively and the overall message conveyed to consumers in not misleading.

To evaluate whether a particular disclosure is clear and conspicuous, consider:

  • the placement of the disclosure in the advertisement and its proximity to the claim it is qualifying;

  • the prominence of the disclosure;

  • whether the disclosure is unavoidable;

  • the extent to which items in other parts of the advertisement might distract attention from the disclosure;

  • whether the disclosure needs to be repeated several times in order to be effectively communicated, or because consumers may enter the site at different locations or travel through the site on paths that cause them to miss the disclosure;

  • whether disclosures in audio messages are presented in an adequate volume and cadence and visual disclosures appear for a sufficient duration; and

  • whether the language of the disclosure is understandable to the intended audience.

If there are indications that a significant proportion of reasonable consumers are not noticing or comprehending a necessary disclosure, the disclosure should be improved.  Advertisers must consider all of the factors, however, and evaluate an actual disclosure in the context of the ad as a whole.

 

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For more information, see here:  https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-staff-revises-online-advertising-disclosure-guidelines/130312dotcomdisclosures.pdf

 

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