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Advertising and Consumer Protections
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False Advertising
False Advertising refers to making untrue or misleading statements about products or services. Advertisers are responsible for ensuring their statements are accurate and not deceptive.
Puffery
Puffery is a promotional statement or claim that is subjective rather than objective and which no reasonable person would take literally. Advertisers must avoid implying factual basis where none exists.
Bait and Switch
Bait and Switch is an unethical advertising strategy where a business advertises a great deal that is unavailable to trick consumers into buying a more expensive product. Advertisers must honor advertised offers.
Consumer Fraud
Consumer Fraud involves deceiving consumers through false promises or representations. Advertisers must be transparent and truthful to avoid fraudulent practices.
Express Warranty
An Express Warranty is a clear statement by the advertiser or seller about the product's quality or functionality. Advertisers must ensure the products meet the stated standards.
Implied Warranty
An Implied Warranty automatically provides a guarantee that products will work as expected for a reasonable period of time. Advertisers cannot disclaim these warranties without proper notice.
Consumer Rights
Consumer Rights are the legally recognized entitlements of shoppers, including the right to safety, to be informed, to choose, and to be heard. Advertisers must respect these rights in their practices.
FDA Approval
FDA Approval is required for food, drugs, and medical devices, indicating they are safe and effective. Advertisers marketing these products must have proper FDA approval before making health claims.
Greenwashing
Greenwashing is the act of misleading consumers about the environmental benefits of a product. Advertisers must substantiate environmental claims to avoid deceiving consumers.
Cooling-Off Rule
The Cooling-Off Rule allows consumers to cancel certain sales within three days for a full refund. Advertisers must inform consumers about this right where applicable.
Endorsements
Endorsements are public declarations of support for a product from a celebrity or expert. Advertisers are responsible for ensuring endorsers' statements are truthful and not misleading.
Comparative Advertising
Comparative Advertising directly compares a product to competitors' offerings. Advertisers must ensure all comparisons are factual, fair, and not misleading.
Trade Description Act
The Trade Description Act prevents businesses from falsely describing goods and services. Advertisers must accurately describe their offerings and adhere to all standards set by this act.
Copy Testing
Copy Testing is assessing advertising messages for effectiveness before airing or publishing. Advertisers are responsible for testing messages to avoid deceptive claims.
Fair Credit Reporting Act (FCRA)
The FCRA regulates the collection and use of consumer credit information. Advertisers offering credit must ensure compliance with this act to protect consumer privacy and accuracy of data.
Price Discrimination
Price Discrimination involves selling the same product to different buyers at different prices. Advertisers must avoid unlawful discrimination based on race, religion, nationality, or gender.
Redress
Redress involves correcting a wrong through compensation or other restitution. Advertisers must provide a means for consumers to seek redress when harmed by advertised products or services.
Substantiation
Substantiation means advertisers must have evidence backing up their claims before making them publicly. Advertisers are required to substantiate their claims to avoid deceiving consumers.
Telemarketing Sales Rule (TSR)
The TSR helps protect consumers from deceptive telemarketing practices. Advertisers engaged in telemarketing must comply with this rule, including disclosing specific information and honoring the National Do Not Call Registry.
Truth in Advertising
Truth in Advertising is the principle that all marketing and communications must be honest and not deceptive. Advertisers are legally obligated to adhere to this standard in all their advertisements.
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