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Business Center on the Internet
This Mission is to show every person on the planet their own personal path to the worldwide Internet. To clear the road for those that want to achieve success on the Internet using unique, leading-edge technology and innovative solutions. To create a ...
Internet Partnerships - Don’t Throw Away Your Business
General partnerships are a poor business entity choice when it comes to pursuing business activities. They fail to provide the asset protection shield that should always be put between your business activities and personal assets. Many small businesses, ...
Why You Can Not Afford To Be "Shy" On The Internet
Have you ever sat down and thought of the differencesbetween business on the Internet and business offline?Obviously the differences are many. There is one BIGdifference, however, that many small business people overlook. That difference is PROMOTION. I'm ...
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The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. The FTC has determined that a representation, omission or practice is deceptive if it is likely to:
1. Mislead consumers and
2. Affect consumers' behavior or decisions about the product or service.
In addition, an act or practice is unfair if the injury it causes is:
1. Substantial
2. Not outweighed by other benefits and
3. Not reasonably avoidable.
The FTC prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that's not true. 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.
In addition, claims must be substantiated, especially when they concern health, safety, or performance. The type of evidence may depend on the product, the claims, and what experts believe necessary. If your ad specifies a certain
level of support for a claim - "tests show X" - you must have at least that level of support.
Other points to consider:
Disclaimers and disclosures must be clear and conspicuous. That is, consumers must be able to notice, read or hear, and understand the information. Still, a disclaimer or disclosure alone usually is not enough to remedy a false or deceptive claim.
Testimonials and endorsements must reflect the typical experiences of consumers, unless the ad clearly and conspicuously states otherwise. A statement that not all consumers will get the same results is not enough to qualify a claim. Testimonials and endorsements can't be used to make a claim that the advertiser itself cannot substantiate.
If your ad uses phrases like "satisfaction guaranteed" or "money-back guarantee," you must be willing to give full refunds for any reason. You also must tell the consumer the terms of the offer.
Non-Compliance
If you fail to follow these rules, you run the risk of being prosecuted by the FTC. Successful prosecutions typically result in injunctions against your site and damages awarded in the amount of $11,000 PER VIOLATION.
About the Author
Richard Chapo is with SanDiegoBusinessLawFirm.com - Go to our article section to read more business law articles.
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Mixer alert! Learn about Internet marketingThe Desert Sun, CA - 23 hours agoAn Internet marketing expert is scheduled to speak at this month's Women Leaders Forum of the Coachella Valley Desert Women Entrepreneurs Mixer. ... |
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