{"id":483,"date":"2015-06-06T17:29:46","date_gmt":"2015-06-06T17:29:46","guid":{"rendered":"http:\/\/revolutionsincommunication.com\/law\/?page_id=483"},"modified":"2023-10-02T15:19:49","modified_gmt":"2023-10-02T15:19:49","slug":"advertising-regs","status":"publish","type":"page","link":"https:\/\/revolutionsincommunication.com\/law\/advertising\/advertising-regs\/","title":{"rendered":"Advertising regulation"},"content":{"rendered":"<p class=\"p1\"><strong>US advertising is regulated<\/strong> by the <a href=\"http:\/\/www.ftc.gov\/\"><span class=\"s1\">Federal Trade Commission,<\/span><\/a> \u00a0the <a href=\"https:\/\/www.fda.gov\/drugs\/information-consumers-and-patients-drugs\/prescription-drug-advertising\">Food and Drug Administration<\/a>, the <a href=\"https:\/\/www.ers.usda.gov\/webdocs\/publications\/41905\/51665_ah715c.pdf?v=0\">US Dept. of Agriculture<\/a>,\u00a0 and the <a href=\"https:\/\/www.sec.gov\/news\/press-release\/2020-334\">Securities and Exchange Commissio<\/a>n.<\/p>\n<p class=\"p1\">The regulations and guidelines can be complex,\u00a0 but they require that advertisers avoid deception and back up (substantiate) their advertising claims.<\/p>\n<div id=\"attachment_5434\" style=\"width: 90px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.nytimes.com\/2022\/10\/04\/business\/dealbook\/kardashian-crypto-sec-gensler-ethereummax.html\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5434\" class=\"wp-image-5434\" src=\"https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2022\/10\/Kardashian.WHphoto.Wikipedia.jpeg\" alt=\"\" width=\"80\" height=\"110\" \/><\/a><p id=\"caption-attachment-5434\" class=\"wp-caption-text\">Kim Kardashian<\/p><\/div>\n<p class=\"p1\">The regulations tend to be strong for securities and financial products, but relatively weak for product advertising and diet supplements. For example, American celebrity Kim Kardashian constantly promotes diet supplements and &#8220;hair care&#8221; products, but it was considered deceptive for her to promote a crypto-currency product without disclosing that she had received a payment of $250,000 for the promotion. <a href=\"https:\/\/www.sec.gov\/news\/press-release\/2022-183\">The SEC fined Kardashian $1.3 million<\/a> in 2022.<\/p>\n<p><strong><span style=\"color: #993300;\">\u00a0<\/span><span style=\"color: #993300;\">If you are involved in an advertising campaign, you have a legal and ethical responsibility to research the regulatory history of your product and comply with the regulations in order to protect yourself, your agency and your clients.\u00a0<\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/WA0wKeokWUU\" width=\"480\" height=\"315\" frameborder=\"0\" align=\"right\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p class=\"p2\"><strong>Major issue areas\u00a0\u00a0include:<\/strong><\/p>\n<ul class=\"ul1\">\n<li class=\"li3\"><a href=\"http:\/\/www.sba.gov\/content\/truth-advertising\"><span class=\"s1\">Truth in Advertising<\/span> <\/a>\u2014 Advertising laws are aimed at protecting consumers by requiring advertisers to be truthful about their products and to be able to substantiate their claims. All businesses must comply with advertising and marketing laws (From SBA web site)<\/li>\n<li class=\"li3\"><a href=\"http:\/\/www.sba.gov\/content\/product-labeling\"><span class=\"s1\">Product labeling<\/span><\/a> \u2014 Claims made on product packaging must comply with some basic truth-in-packaging and labeling rules. These claims include descriptions of ingredients, package size and volume, and discount or lower price labeling. Under the Fair Packaging and Labeling Act (FPLA), the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA) issue regulations requiring all consumer commodities be labeled to disclose net contents, identity of the product, and the name and place of business of the product\u2019s manufacturer, packer or distributor. (From SBA web site)<\/li>\n<li class=\"li3\"><a href=\"http:\/\/www.sba.gov\/content\/advertising-specific-products\"><span class=\"s1\">Special product advertising<\/span><\/a> \u2014 Automobiles, computers and internet services, health and fitness products, housing and real estate, telephone services, and<a href=\"http:\/\/www.ftc.gov\/bcp\/grnrule\/guides980427.htm\"><span class=\"s1\">environmental or green marketing claims<\/span><\/a> . For alcohol and children\u2019s advertising, see below.<\/li>\n<\/ul>\n<p class=\"p2\">The FTC issues <a href=\"http:\/\/www.ftc.gov\/bcp\/guides\/guides.htm\"><span class=\"s1\">guidelines<\/span> <\/a>which help advertisers understand regulations in areas such as price claims, use of the word \u201cfree,\u201d endorsements, diet plans, food advertising and so on. For example, the\u00a0 FTC says:<\/p>\n<ul class=\"ul1\">\n<li class=\"li3\">Agencies, publishers and web sites are themselves responsible for ensuring that their advertisers claims are substantiated.\u00a0 It is not enough to take the claims at face value.<\/li>\n<li class=\"li3\">Disclaimers and disclosures must be clear and conspicuous.<\/li>\n<li class=\"li3\">Demonstrations must show how the product will perform under normal use.<\/li>\n<li class=\"li3\">\u201cBait and switch\u201d advertising is not permitted.<\/li>\n<\/ul>\n<p><strong>FTC&#8217;s <\/strong><a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2012\/10\/ftc-issues-revised-green-guides\"><strong>Green guides<\/strong> <\/a>for example, explain how to avoid deceptive practices such as some of these shown in a recent video:<\/p>\n<p>An\u00a0 example, provided by the FTC, is this: Suppose a package once made from 2 percent recycled fibers is now being made from 3 percent recycled fibers. Clearly, would be false to say the package is 100 percent recycled. But could a company say: \u201cNow with 50 percent more recycled fibers\u201d ? No, according to the FTC\u2019s guidelines on environmental advertising, such a claim would be deceptive even though it is literally true.<\/p>\n<div id=\"attachment_5979\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.ftc.gov\/media\/71414\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5979\" class=\"wp-image-5979 size-medium\" src=\"https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-02-at-10.48.49-AM-300x170.png\" alt=\"\" width=\"300\" height=\"170\" srcset=\"https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-02-at-10.48.49-AM-300x170.png 300w, https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-02-at-10.48.49-AM-1024x580.png 1024w, https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-02-at-10.48.49-AM-768x435.png 768w, https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-02-at-10.48.49-AM-1536x870.png 1536w, https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-02-at-10.48.49-AM-800x453.png 800w, https:\/\/revolutionsincommunication.com\/law\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-02-at-10.48.49-AM.png 1678w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-5979\" class=\"wp-caption-text\">FTC &#8220;Green guides&#8221; video<\/p><\/div>\n<p>The <a href=\"https:\/\/www.ftc.gov\/media\/71414\">green guides have their own video<\/a>.<\/p>\n<p><strong>Enforcement\u00a0<\/strong><\/p>\n<p class=\"p2\">When the FTC learns of a deceptive practice, it may meet informally with a company and propose a cease and desist order. If the company agrees, and a consent order can be worked out, no further action is taken. However, companies may challenge proposed orders before an administrative law judge and appeal any decisions in federal court.<\/p>\n<p class=\"p2\">The FTC may order fines, corrective advertising or other remedies in cases of misleading advertising. For instance, some companies have been forced to advertise that their product doesn&#8217;t really cure &#8220;tired blood&#8221; after all,\u00a0 \u00a0 or that there may be substantial penalties for early withdrawel from certain types of bank accounts.<\/p>\n<p><span style=\"color: #444444;\">Class action lawsuits on behalf of the victims of deceptive advertising have been another mechanism by which enforcement of fair trade laws take place.\u00a0 For instance,\u00a0 in March, 2006, a <\/span><a href=\"http:\/\/marketplace.publicradio.org\/shows\/2006\/03\/30\/PM200603302.html\"><span class=\"s1\">lawsuit against makers of sun screen<\/span><\/a><span style=\"color: #444444;\"> products was filed claiming false and deceptive advertising, even though the Federal Trade<\/span><a href=\"http:\/\/www.ftc.gov\/bcp\/conline\/pubs\/health\/sun.htm\"><span class=\"s1\">Commission has warned consumers<\/span><\/a><span style=\"color: #444444;\"> that sun block is not very effective or that certain debt relief services do not relieve debt. Here&#8217;s an example of a 2017 FTC\u00a0 <a href=\"https:\/\/www.ftc.gov\/legal-library\/browse\/cases-proceedings\/082-3159-indoor-tanning-association-matter\">enforcement action with respect to the &#8220;Indoor Tanning Association.<\/a>&#8221;\u00a0<\/span><\/p>\n<p class=\"p2\">Another important area of advertising regulation is the Food and Drug Administration\u2019s regulations about prescription drug advertising. See these links for FDA\u00a0<a href=\"http:\/\/www.fda.gov\/Drugs\/GuidanceComplianceRegulatoryInformation\/Guidances\/ucm064956.htm\"><span class=\"s1\">prescription advertising guidelines<\/span><\/a> \u2014 and other <a href=\"http:\/\/www.fda.gov\/Drugs\/GuidanceComplianceRegulatoryInformation\/Guidances\/ucm064956.htm\"><span class=\"s1\">advertising advisories<\/span><\/a>.<\/p>\n<p class=\"p2\">\n<hr \/>\n<h3 class=\"p2\"><strong>More\u00a0<\/strong><\/h3>\n<p><a href=\"https:\/\/www.virginiabusinesslitigationlawyer.com\/\">Virginia business law<\/a> blog<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=3roITeXVWuE&amp;t=3s\">&#8220;Environmental Friendly&#8221; products are a scam<\/a> (video)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US advertising is regulated by the Federal Trade Commission, \u00a0the Food and Drug Administration, the US Dept. of Agriculture,\u00a0 and the Securities and Exchange Commission. The regulations and guidelines can be complex,\u00a0 but they require that advertisers avoid deception and &hellip; <a href=\"https:\/\/revolutionsincommunication.com\/law\/advertising\/advertising-regs\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":960,"parent":49,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"full-width-page.php","meta":{"footnotes":""},"class_list":["post-483","page","type-page","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/pages\/483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/comments?post=483"}],"version-history":[{"count":6,"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/pages\/483\/revisions"}],"predecessor-version":[{"id":5987,"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/pages\/483\/revisions\/5987"}],"up":[{"embeddable":true,"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/pages\/49"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/media\/960"}],"wp:attachment":[{"href":"https:\/\/revolutionsincommunication.com\/law\/wp-json\/wp\/v2\/media?parent=483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}