If you could time-travel to the early 20th century, you would soon find yourself immersed in the world of advertising claims so outrageous and exaggerated, they would make weight loss advertising today seems relatively tame. Caveat emptor, a Latin term meaning “let the buyer beware,” the general principle by courts favored merchant of consumers. Over the years, however, the FTC has tried to protect consumers by putting more advertising regulation. Consequently, as a business, it is important that you know how to properly ad to avoid Baruch anger FTC and get a hefty fine or even worse, be served by a process server with a summons at your doorstep appear in civil court!
The FTC regulates advertising for its fairness and accuracy. The agency performs this in several ways. For example, if you report ad promising “75% discount” in an effort to remove excess inventory. To comply with advertising regulations FTC, the audit will actually be discounted by 75%. In other words, you are not allowed to inflate the price to reach the Markdown. Or let’s assume that you report ad for a shirt that says “100% cotton.” This, too, could be challenged by the FTC.
performance requirements are also subject to advertising regulation. If your business is to require the capacities of a particular product, then you will be able to provide arguments. To illustrate, suppose you sell anti-anxiety pills that claim to increase GABA levels in the brain. According to the FTC, you – advertisers – must be presented. Should you not substantiate your claim, the FTC would have to correct it, cure known product liability law as corrective advertising.
Bait and switch is unscrupulous tactic designed to entice a flurry of customers where the salesperson or company advertises a product cheaper than the one they have in fact exist. The FTC prohibits its use. Therefore, if you are selling it ostensibly appears the consumer agreed 2006 Toyota Corolla, but you’re actually selling a 2009 Toyota Camry (and not even a former car in stock), then you are at misleading advertising method FTC prohibits and it may improve.
In short, be sincere in what you advertise or offer to go with the current advertising regulations. Ensure that sales discounts are accurate. Providing arguments claims you make about the product you sell. And finally, avoid the bait and switch tactics just to get customers into your store. Follow all of the above, and you’ll get to be punished by the FTC.