If a disclosure provides information that contradicts a material claim, the disclosure will not be sufficient to prevent the ad from being deceptive. Read about the, The FTC’s Telemarketing Sales Rule helps protect consumers from fraudulent telemarketing calls and gives them certain protections under the, Office of Equal Employment Opportunity and Workplace Inclusion, Reporting Fraud, Waste, Abuse or Mismanagement, What You Need to Know About the Office of the Inspector General, Companies and People Banned From Debt Relief, Statute, Rules and Formal Interpretations, Post-Consummation Filings (HSR Violations), Retrospective Review of FTC Rules and Guides, Other Applications, Petitions, and Requests, Magnuson-Moss Warranty Public Audit Filings, International Technical Assistance Program, Competition & Consumer Protection Authorities Worldwide, Hearings on Competition & Consumer Protection, List a Number on the National Do Not Call Registry, File Documents in Adjudicative Proceedings, Business Guide to the FTC's Mail, Internet, or Telephone Order Merchandise Rule, food advertising to children and adolescents, Guides Concerning Use of Endorsements and Testimonials in Advertising, Use of Endorsements and Testimonials in Advertising, Consumer Review Fairness Act: What Businesses Need to Know, Environmental Claims: Summary of the Green Guides, Dietary Supplements: An Advertising Guide for Industry, Enforcement Policy Statement on U.S. In May 2000, the FTC issued a follow-up report, Privacy Online: Fair Information Practices in the Electronic Marketplace. )See Textile Fiber Products Identification Act and Calling It Cotton: Labeling and Advertising Cotton Products. Office of Equal Employment Opportunity and Workplace Inclusion, Reporting Fraud, Waste, Abuse or Mismanagement, What You Need to Know About the Office of the Inspector General, Companies and People Banned From Debt Relief, Statute, Rules and Formal Interpretations, Post-Consummation Filings (HSR Violations), Retrospective Review of FTC Rules and Guides, Other Applications, Petitions, and Requests, Magnuson-Moss Warranty Public Audit Filings, International Technical Assistance Program, Competition & Consumer Protection Authorities Worldwide, Hearings on Competition & Consumer Protection, List a Number on the National Do Not Call Registry, File Documents in Adjudicative Proceedings, General Offers and Claims — Products and Services, Laws Enforced by the Federal Trade Commission, Dot Com Disclosures: Information About Online Advertising. Part 23); Guides for Select Leather and Imitation Leather Products (16 C.F.R. These plans typically promise that people who sign up as distributors will get commissions two ways - on their own sales and on the sales their recruits have made. For example, a lease advertisement for an automobile that promotes "$0 Down" may be misleading if significant and undisclosed charges are due at lease signing. Part 303); Energy and Water Use Labeling for Consumer Products under the Energy Policy and Conservation Act (“Energy Labeling Rule”) (16 C.F.R. in some instances, refunds to consumers for actual damages in civil lawsuits. It also discusses how certain FTC rules and guides that use terms like "writing" or "printed" apply to Internet activities and how technologies such as email may be used to comply with certain rules and guides. Testimonials and endorsements must reflect the typical experiences of consumers, unless the ad clearly and conspicuously states otherwise.

Disclosures should be placed as close as possible to the claim they qualify.

Part 703). In addition, your ads shouldn't imply significant environmental benefits if the benefit isn't significant. The FTC's Jewelry Guides tell you how to make accurate and truthful claims about jewelry you offer for sale.The Guides cover claims made for gold, silver, platinum, pewter, diamonds, gemstones, and pearls and define how certain common terms may be used in ads. Part 433); Mail or Telephone Order Merchandise (16 C.F.R. You also must tell the consumer the terms of the offer.See Guides for the Advertising of Warranties and Guarantees, A Businessperson’s Guide to Federal Warranty Law, and Consumer Product Warranties. Ads like these should describe all the terms and conditions of the free offer clearly and prominently.See Guide Concerning the Use of the Word Free and Similar Representations. Online ads may contain or consist of audio messages, videos, animated segments or augmented reality experiences with claims that require qualification. Do you promote your products as “Made in the USA”? Origin Claims, .com Disclosures: How to Make Effective Disclosures in Digital Advertising, Complying with the Telemarketing Sales Rule. Part 700); Disclosure of Written Consumer Product Warranty Terms and Conditions (16 C.F.R. Pyramid schemes - a form of multi-level marketing - involve paying commissions to distributors only for recruiting new distributors.

In interpreting Section 5 of the Act, the Commission has determined that a representation, omission or practice is deceptive if it is likely to: In addition, an act or practice is unfair if the injury it causes, or is likely to cause, is: The FTC Act prohibits unfair or deceptive advertising in any medium.

The agency also continues to evaluate online advertising, using traditional criteria, while recognizing the challenges that may be presented by future innovation. For copies of the rules and commentaries relevant to your Internet enterprise, contact: Consumer Response Center, Federal Trade Commission, Washington, DC 20580; toll-free: 1-877-FTC-HELP (382-4357); TDD: 1-866-653-4261.

The FTC periodically joins with other law enforcement agencies to monitor the Internet for potentially false or deceptive online advertising claims. Many rules and guides address claims about products or services, or advertising in general, and apply to online advertising, as well as to other media. According to the Mail or Telephone Order Merchandise Rule, you must have a reasonable basis for stating or implying that a product can be shipped within a certain time. Informal Dispute Settlement Procedures (16 C.F.R. It only addresses disclosures required pursuant to laws that the FTC enforces. When those parties take adverse action on the basis of information in a credit report, they must identify the CRA that provided the report so that the consumer can learn how to get a copy to verify or contest its accuracy and completeness. The FTC also launched a special site at www.onguardonline.gov/topics/kids-privacy.aspx to help children, parents and site operators understand the provisions of COPPA and how the law will affect them. The Act prohibits creditors from taking actions that adversely affect the consumer's credit standing until the investigation is completed, and affords other consumer protections during disputes. the names, addresses, and telephone numbers of other purchasers; a fully-audited financial statement of the seller; the background and experience of the business's key executives; the cost of starting and maintaining the business; and. The Report noted that while over 85 percent of all websites collected personal information from consumers, only 14 percent of the sites in the FTC's random sample of commercial websites provided any notice to consumers of the personal information they collect or how they use it. The Consumer Leasing Act regulates personal property leases that exceed four months and are made to consumers for personal, family, or household purposes. Always account for viewing on different devices. Elements like graphics, sound, text, links that lead to other screens or sites or “add to cart” buttons may result in consumers not noticing, reading, or listening to the disclosure. Say a trash bag is labeled "recyclable" without qualification. Do not let other parts of an advertisement get in the way. Advertisers should consult with experienced experience FTC compliance and defense counsel when developing online ads and ensuring compliance with the law. In addition, the Act establishes a three-day right of rescission in certain transactions involving the establishment of a security interest in the consumer's principal dwelling (with certain exclusions, such as interests taken in connection with the purchase or initial construction of a dwelling). The Act also requires that creditors promptly post payments to the consumer's account, and either refund overpayments or credit them to the consumer's account.See The Fair Credit Billing Act. Environmental Advertising and Marketing Practices Guide, Guide Concerning the Use of the Word Free and Similar Representations, Guides for the Jewelry, Precious Metals and Pewter Industries, Complying with the FTC’s Mail or Telephone Order Merchandise Rule, Telephone Disclosure and Dispute Resolution Act, Complying with the Telemarketing Sales Rule, FTC Guides Concerning Use of Endorsements and Testimonials in Advertising, Pre-Sale Availability of Written Warranty Terms Rule, Guides for the Advertising of Warranties and Guarantees, A Businessperson’s Guide to Federal Warranty Law, Textile Fiber Products Identification Act, Enforcement Policy Statement on U.S. Deceptive cl… In evaluating whether disclosures in these multimedia portions of online ads are clear and conspicuous, advertisers should evaluate all FTC guidance, including, but not limited to: The FTC continues to enforce its consumer protection laws to ensure that products and services are described truthfully online. Running afoul of Federal Trade Commission advertising guidelines can have significant negative consequences for a business. Part 301); Rules and Regulations Under the Textile Fiber Products Identification Act (16 C.F.R. All Rights Reserved. Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. FTC DOT COM ONLINE ADVERTISING DISCLOSURE GUIDELINES The Federal Trade Commission enforces consumer protection laws to ensure that products and services are described truthfully online, free of deception and unfair practices as prohibited by the FCT Act. The following rules and guides are included in this category: Advertisers are responsible for ensuring that all express and implied claims that an ad conveys to reasonable consumers are truthful and substantiated. Part 701); Pre-Sale Availability of Written Warranty Terms (16 C.F.R. Part 18); Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry (16 C.F.R. In addition, you should tell consumers if the pearls that you are selling are cultured or imitation, so that consumers are not misled about the type of pearl being offered.See Guides for the Jewelry, Precious Metals and Pewter Industries. The ECOA requires creditors to provide applicants with the reasons credit was denied if the applicant asks.See Equal Credit Opportunity Act. � 45. Part 300); Rules and Regulations Under Fur Products Labeling Act (16 C.F.R.

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