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Legal Issues in Advertising and Marketing
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Truth in Advertising
Advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. Companies have the responsibility to substantiate their claims before making them.
Comparative Advertising
Comparative advertising must not be misleading and must compare products objectively. Companies should ensure that comparisons are factual, unbiased, and based on substantiated evidence.
Endorsements and Testimonials
Endorsements should reflect the honest opinions, findings, beliefs, or experience of the endorser. Advertisers must have adequate substantiation to support these claims and clearly disclose any material connections with endorsers.
Disclosure Requirements
Advertisers must clearly and conspicuously disclose all material terms that could affect a consumer's understanding of an offer. Companies are responsible for providing all the relevant information in a clear manner.
Environmental Marketing Claims
Environmental claims should not overstate any environmental attribute a product or service offers. Companies need to have scientific evidence to back up environmental assertions.
Health-related Claims
Health claims in advertising must be supported by scientific evidence and must not mislead consumers. Advertisers have a duty to substantiate health claims and present them clearly.
Price Promotions
Price promotions must genuinely represent savings and must not mislead consumers. Companies must ensure that promotional prices are based on actual previous prices.
Sweepstakes and Contests
Promotions like sweepstakes and contests must clearly disclose how to enter, the odds of winning, the prize, and any conditions. Companies are obligated to run these promotions fairly and according to the disclosed rules.
Bait Advertising
Bait advertising is illegal; advertisements must not mislead consumers into expecting a product or service at a certain price when there is no intention to sell it as such. Companies should avoid the bait and switch practice.
CAN-SPAM Act
This act sets rules for commercial email, establishes requirements for commercial messages and gives recipients the right to have you stop emailing them. Companies have a responsibility to comply with regulations regarding the clarity and content of their emails.
Children's Advertising Review Unit (CARU)
CARU sets guidelines for responsible advertising to children under 12. Companies should follow CARU's guidelines to create age-appropriate, non-deceptive advertisements for children.
Telemarketing Sales Rule (TSR)
This rule applies to all telemarketing activities. Companies must avoid misleading practices, provide certain information before billing, and follow payment restrictions. The TSR also governs the use of robocalls.
Native Advertising
Native ads should be clearly identifiable as ads and not disguised as other content. Companies must ensure that native advertisements are distinguishable from editorial content or user-generated content on the platform.
Intellectual Property in Advertising
Marketing materials must respect intellectual property laws and not infringe on trademarks, copyrights, or patents. Companies have a legal obligation to ensure that their advertising content does not violate others' IP rights.
Alcohol Advertising Regulations
Alcohol advertisements must follow specific guidelines related to audience age and content. Companies must ensure that their alcohol advertisements are responsible, legal, and follow all applicable regulations.
Tobacco Advertising Restrictions
Tobacco advertising is highly regulated, with strict rules on where and how it can be advertised. Companies have a responsibility to comply with restrictions and ensure their ads do not target underage consumers.
Data Protection and Privacy Laws
In advertising, companies must adhere to data protection and privacy laws like GDPR and CCPA when handling consumer data. It is mandatory to respect consumers' privacy and secure data.
Material Connection Disclosure
When there is a material connection between an advertiser and endorser, it must be clearly disclosed in the advertisement. Companies must be transparent about any compensation or relationships that may affect endorsements.
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