Introducing a new product online? Protect yourself against false advertising claims

Hello!

I hope all is well. Today I am going to discuss false advertising. Specifically, if you are a newbie to online advertising, how do you protect your business against false advertising claims?

Federal law prohibits unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce. 15 U.S.C. 45(1) Specifically, the Federal Trade Commission Act defines a false ad as one which is "misleading in a material respect." Sec. 12 FTC. Material misleading ads include:

1. false written or oral statements regarding a product or service;
2. misleading price claims or sales;
3. sale of hazardous or defective products or services without proper disclosure;
4. failure to perform promised services; or
5. failure to meet warranty obligations.
Firestone, 81 F.T.C. 398, 451-52 (1972),

When advertising or endorsing a product or service, a retailer or advertiser must be:

1. truthful at ALL COST
2. not deceptively misleading regarding the capabilities of a product or service, i.e., no embellishment
3. not unfair.

Of course, whether an advertiser's claim that a product will achieve the results advertised in some instances, may be subjective. For example, a face cream may achieve the desired results for one customer but not for another customer. The customer who did not achieve the results advertised may assert a claim for false advertising against the advertiser. How can an advertiser avoid such a claim?

An advertiser can protect itself from such a claim by placing very prominent disclosures on the advertisement. A disclosure for skin care may read like this:

Through clinical testing of "Said Product" skin achieved a more balanced and even skin tone within 12 weeks of use. However results may vary.

As stated, the disclosure must be prominent. So do not use small text and make sure the disclosure is in close proximity to your claim.

Although disclosures are a great defense against a frivolous false advertising claim, making purposeful false statements in ads can trigger legal action.

I hope this information was helpful. Leave a comment if you have any further questions.

Best