Top 10 Advertising Compliance List:

Make Sure Your Advertising Claims Aren't Unfair

Description

Whether you advertise on the Internet--or you're a large advertiser making a broadcast network buy--there are many things that you should look at first--before you place that media buy or create that ad. And, of course, you should consult with a legal professional before you launch any ad campaign. This article is a useful review of 10 key areas you should look at when you're reviewing your advertising to see if it's in compliance with the numerous laws, rules, regulations and guidelines that may affect your ads.

Item #3. Make Sure Your Advertising Claims Aren't Unfair

In the late 1970's and early 1980's, a fierce battle raged over whether to strip the Federal Trade Commission of its power to regulate "unfairness" in advertising (i.e., "unfair or deceptive acts or practices"). (See Section 5 of the Federal Trade Commission Act.) The concept of consumer "unfairness" was--and--is a difficult one to accurately define. In the Federal Trade Commission Unfairness Policy Statement, December 17, 1980, FTC laid out a "concrete framework for future application" of FTC's unfairness authority. That document synthesized the decided cases and rules, gleaning "the most important principles of general applicability."

Emerging from the cases are three key factors that FTC considers when applying the prohibition against consumer unfairness:

• Whether the practice injures consumers,
• Whether it violates established public policy, and
• Whether it's unethical or unscrupulous.

Over the years, FTC has further defined and explained these three key factors. The "unfairness" standard is one more crucial advertising law doctrine of which all advertisers, advertising agencies and their attorneys must be aware. Advertising Compliance Service regularly explores the ongoing developments in this major area.

Under The Federal Trade Commission Act Amendments of 1994, Section 5 of the FTC Act was amended so as to require FTC--prior to finding an act or practice "unfair"--to first determine that the act or practice--

• Causes or is likely to cause substantial injury to consumers;
• Is not reasonably avoidable by consumers and
• Is not outweighed by countervailing benefits to consumers or competitors.

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