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Advertising Law Basics

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Truth in Advertising

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Federal and state laws require advertisements to be truthful, not misleading, and, when appropriate, backed by scientific evidence.

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Comparative Advertising

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A marketing strategy where a product's values are compared directly with a competitor's. It must not be misleading and should compare objectively measurable features.

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Puffery

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An advertising or promotional statement that is subjective rather than objective, which no reasonable person would take literally.

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Substantiation

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Advertisers must have evidence supporting their claims before an ad is published; for certain types of claims, the evidence must be competent and reliable.

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Decency in Advertising

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Ads must not contain materials that are obscene, offensive, or inappropriate according to community standards.

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Endorsements and Testimonials

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Must reflect the honest opinions or experiences of the endorser and should not include deceptive or unsubstantiated claims.

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Bait-and-Switch Advertising

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An illegal practice in which customers are lured by advertisements for a product or service at a low price but are then persuaded to buy a more expensive item.

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Advertising to Children

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Special rules apply to ads directed at children, including not exploiting their inexperience, credulity, or sense of loyalty.

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Environmental Marketing Claims

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Claims about a product's environmental benefits must be truthful and substantiated. 'Greenwashing' could lead to penalties.

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Advertising Disclosures

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Information that must be provided in an ad to prevent it from being deceptive, i.e., small print details, conditions, or limitations.

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Direct Marketing

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Direct marketing, including telemarketing, email, and texting, must comply with laws like the CAN-SPAM Act and Do Not Call regulations.

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Intellectual Property in Advertising

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Using copyrighted material or trademarks within an advertisement must be done legally to avoid infringement.

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Online Behavioral Advertising

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This involves tracking consumer activities online to target more effective advertisements. It must not violate privacy laws or regulations.

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Celebrities in Advertising

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Their participation in ads must be authentic and they should actually use or endorse the product, lest it be misleading.

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Comparability in Advertising

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When claiming a product is better or superior, the basis of comparison must be clearly stated and be objectively verifiable.

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Lanham Act

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A federal statute that provides a system of trademark registration and protects the owner of a federally registered mark against the use of similar marks.

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Federal Trade Commission (FTC)

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A federal agency that enforces consumer protection laws, including laws against deceptive advertising.

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Sales Promotions

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Legal requirements govern sales promotions to ensure that any conditions, limitations or expiration dates are clearly communicated to consumers.

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Advertisements and Privacy

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Advertisements must respect the privacy of individuals and comply with data protection and privacy laws.

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Misleading Illustrations

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Visual aids in advertisements that create false impressions or misrepresent the product or service are prohibited.

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Price Claims

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Advertisements must not mislead consumers about the price of a product or service, including any hidden fees or conditions.

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Unsolicited Advertising (Spam)

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Sending unsolicited advertisements via email (spam) is regulated by the CAN-SPAM Act, setting requirements for message content and offering opt-out mechanisms.

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Health and Safety Claims

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Claims regarding the health and safety benefits of a product must be supported by scientific evidence and must not be misleading.

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Guarantees and Warranties

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Any guarantees or warranties offered must be clearly defined and the terms must be made available to consumers.

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Fine Print

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Any important limitations or qualifications to an offer that are only disclosed in the fine print can be deemed deceptive if not made evidently clear to the consumer.

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