Depending on the type of business you own, you may advertise to sell your services or goods. If you do, you are held to a certain standard when it comes to truth in advertising. In order to avoid allegations of deceptive business practices, you may want to speak with an experienced business law attorney before advertising to gain a comprehensive understanding of what is expected of you.
The Federal Trade Commission Act has laws that apply to businesses that advertise their goods or services. And, although advertisements are meant to draw customers in, they cannot be deceptive. According to the Federal Trade Commission Act, all advertisements must be fair, truthful and non-deceptive. Businesses can make their goods and services attractive to consumers but must avoid doing so through deception or unsubstantiated claims.
Although there are several interpretations of what is a deceptive or unfair advertising tactic, the Federal Trade Commission has the power to make its own determination and impose its own remedies. Businesses that are found to have engaged in unfair or deceptive advertising practices may face significant fines and penalties. Depending on the nature of each violation, those responsible may have to pay hefty civil penalties to consumers. If the violation resulted in injury to a consumer, the responsible party may be ordered to pay damages to the injured.
Although it may be difficult to ensure every guarantee or claim is 100 percent accurate, businesses should try their hardest to avoid any advertising tactic that could be seen as unfair or deceptive. Working with a business law lawyer can help business owners stay informed of what is expected of them when advertising and defend their actions if a dispute arises.