Unfairness Policy Statement
"Normally we expect the marketplace to be self-correcting,
and we rely on consumer choice-the ability of individual consumers
to make their own private purchasing decisions without regulatory
intervention--to govern the market. We anticipate that consumers
will survey the available alternatives, choose those that
are most desirable, and avoid those that are inadequate or
unsatisfactory. However, it has long been recognized that
certain types of sales techniques may prevent consumers from
effectively making their own decisions, and that corrective
action may then become necessary."
An advertising practice is considered unfair if
- it injures consumers (including financial injury)
- it violates established public policy
- it is unethical or unscrupulous (violates generally accepted
business practices)
Deception Policy Statement
FTC will find deception "if there is a representation,
omission or practice that is likely to mislead a reasonable
consumer." If an ad is targeted at "highly susceptible
classes of purchasers," the effect on that group will
be taken into consideration.
Advertising Substantiation Policy Statement
Advertisers, ad agencies and website designers must have
a "reasonable basis" for advertising claims before
they are disseminated.
Advertisers, ad agencies and website designers must substantiate
express and implied claims that make objective assertions
about the item or service advertised.
A firm's failure to possess and rely upon a reasonable basis
for objective claims constitutes an unfair and deceptive act
or practice.
When the substantiation claim is express (e.g.., "tests
prove", "doctors recommend", and "studies
show"), the Commission expects the firm to have at least
the advertised level of substantiation.
What constitutes a "reasonable basis" depends,
as it does in an unfairness analysis, on a number of factors
relevant to the benefits and costs of substantiating a particular
claim. These factors include: the type of claim, the product,
the consequences of a false claim, the benefits of a truthful
claim, the cost of developing substantiation for the claim,
and the amount of substantiation experts in the field believe
is reasonable.
Substantiation investigations will rarely be made public
before they are completed.
Endorsements (Testimonials) Guide
Statements from satisfied customers usually are not sufficient
to support a health or safety claim or any other claim that
requires objective evaluation.
An endorsement reflecting the experience of an individual
or a group of consumers on a central or key attribute of the
product or service will be interpreted as representing that
the endorser's experience is representative of what consumers
will generally achieve
Unless there's adequate substantiation, the ad must disclose
what the generally expected performance would be. (i.e. a
disclaimer stating "results may vary").
Claims concerning the efficacy of any drug or device shall
not be made in lay endorsements unless:
- the advertiser has adequate scientific substantiation
for such claims
- the claims are not inconsistent with any determination
that has been made by the Food and Drug Administration with
respect to the drug or device that is the subject of the
claim.
When there exists a connection between an expert endorser
and the seller of the advertised product which might materially
affect the weight or credibility of the endorsement (i.e.,
the connection is not reasonably expected by the audience)
such connection must be fully disclosed.
