The Internet is connecting advertisers and marketers to customers from Boston to Bali. If you’re thinking about advertising on the Internet, remember that many of the same rules that apply to other forms of advertising apply to electronic marketing.
The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. The FTC has determined that a representation, omission or practice is deceptive if it is likely to:
1. Mislead consumers and
2. Affect consumers’ behavior or decisions about the product or service.
In addition, an act or practice is unfair if the injury it causes is:
1. Substantial
2. Not outweighed by other benefits and
3. Not reasonably avoidable.
The FTC prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true. For example, a lease advertisement for an automobile that promotes “$0 Down” may be misleading if significant and...
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