Advertising Law

Good marketing is critical to the success of your business. Marketing has many dimensions, including market research, pricing, advertising, packaging and labeling, distribution and customer service. Investing in a good marketing plan will generate excellent returns.

But there's more to a winning marketing plan or advertising campaign than a profitable product or service. Unfair, untruthful or purposely deceptive advertising can result in costly penalties. The resources below provide information on how to legally advertise your small business:

• Truth-in-Advertising Laws

  Advertising laws are aimed at protecting consumers by requiring advertisers to be truthful about their products and to be able to substantiate their claims. All businesses must comply with advertising and marketing laws, and failure to do so could result in costly lawsuits and civil penalties. So before you start an advertising campaign, it's important you understand some basic rules.

  The Federal Trade Commission (FTC) is the main federal agency that enforces advertising laws and regulations. Under the Federal Trade Commission Act:

  • Advertising must be truthful and non-deceptive;
  • Advertisers must have evidence to back up their claims; and
  • Advertisements cannot be unfair.

  Additional laws apply to ads for specialized products like consumer leases, credit, 900 telephone numbers, and products sold through mail order or telephone sales. State and local governments also regulate advertising, and enforcement is usually the responsibility of a state attorney general, a consumer protection agency or a local district attorney.

  The following resources and how-to guides help small business owners comply with federal advertising laws:

  General Information

  • Advertising Fact Sheets for Small Businesses
    FTC fact sheets that explain how to comply with laws covering truth-in-advertising, marketing, and product labeling laws and regulations. Includes information on specific types of products and services.
  • Advertising Guidance Documents
    Detailed guidance, policy statements, workshops and notifications issued by the FTC on a variety of advertising laws and regulations.
  • Frequently Asked Questions : A Guide for Small Business
    Answers to common questions about truth in advertising laws, unfair practices, and rules that apply to specific products and types of advertising.
  • Green Lights & Red Flags : FTC Rules of the Road for Advertisers
    Information about workshops offered nationwide about complying with federal truth-in-advertising laws.

  Pricing Rules

  • Guide Against Deceptive Pricing
    Guidance on how to comply with laws regarding comparison and bargain pricing.
  • Guide Against Bait Advertising
    Learn how to avoid illegal bait and switch tactics when pricing products.
  • Guide Concerning the Use of the Word "Free" and Similar Representations
    Learn the proper ways to advertise "free" items, such as "buy one, get one free."
  • Good Pricing Practices
    It is against the law to charge more than the advertised shelf price for a product. Stores that do may be subject to civil and criminal fines. This guide provides suggestions for pricing your products and services.

  Endorsements and Testimonials

  • Guide Concerning Use of Endorsements and Testimonials in Advertising
    Explains how to advertise using endorsements from customers, experts and critical reviews.
    

  State and Local Advertising Laws

  Individual states and some localities have also passed specific truth-in-advertising laws. The Consumer Action Handbook provides links to state and local agencies responsible for enforcing truth-in-advertising and related consumer protection laws.

• Product Labeling

  The label and packaging on products you create and/or sell are forms of advertising. The claims make on product packaging must comply with some basic truth-in packaging and labeling rules. These claims include descriptions of ingredients, package size and volume, and discount or lower price labeling. Under the Fair Packaging and Labeling Act (FPLA), the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA) issue regulations requiring all consumer commodities be labeled to disclose net contents, identity of the product, and name and place of business of the product's manufacturer, packer, or distributor.

  General Product Labeling Rules

  • Guide to the Fair Packaging and Labeling Act
    Learn the basic requirements and exemptions under FPLA.
    
  • Made in USA Standard
    How-to guide and enforcement policy statement for making Made in USA claims on product labels.

  Labeling Rules for Specific Products

  Food Advertising and Labeling

  • FDA Guide for Labeling and Advertising
    This guidance is intended to clarify for applicants the requirements for product name placement, size, and prominence in labeling and advertising for human and animal prescription drugs and biological products.The FDA regulates food labeling in the United States and also has authority over the labeling of dietary supplements, cosmetics, drugs (both prescription and over-the-counter), medical devices, devices that emit radiation, animal foods, drugs and cosmetics. The FDA regulates both the nutritional labeling of food products, but also the advertising of food and drugs.
    
  • Dietary Supplements : An Advertising Guide for Industry
    Advertisers must comply with laws concerning unfair or deceptive practices and must be able to substantiate claims made for dietary supplements.

  Appliances and Electronics

  • Complying with the Appliance Labeling Rule
    Section 137 of the Energy Policy Act of 2005 requires the FTC to examine the effectiveness of current energy efficiency labeling requirements for consumer products issued pursuant to the Energy Policy and Conservation Act
  • Appliance Labeling FAQs from Manufacturers
    List of questions and answers to help manufacturers comply with the Appliance Labeling Rule.
    
  • Energy Efficiency Claims and Labeling Requirements
    Current energy efficiency labeling requirements for consumer products issued pursuant to the Energy Policy and Conservation Act.

  Textiles

  • Labeling of Textile, Wool, Fur and Apparel Products
    FPLA, Textile Fiber Identification Products Identification Act & Wool Products Labeling Act of 1939; Care Labeling Rule, Revised Leather Guides, generic fiber petitions, Cashmere Labeling Conference.

• Online Advertising Law

• An old cartoon in the New Yorker showed two dogs in front of a computer, and ha...