The key point to understand online advertising law would be that the FTC will enforce its consumer protection laws even in cyberspace.
There will be new issues all time even though the general principles of print, radio and TV advertising law apply to online ads.
Businesses need to stay current on the latest legal interpretations and ensure that they are in compliance with online advertising laws when they develop their online ads. If they don’t have time to be updated on the current legal issues, make sure that online advertising campaign is handled by a competent lawyer with deep knowledge of Internet and online advertising case law.
Online ads:
Must be truthful and not ambiguous;
Must have proof to back up their claims;
Cannot be unfair; and
Any disclosures you make must be clear and evident.
Disclosure is considered to be one of the most important aspects of online advertising law. Advertisers must assume that site visitors won’t read an entire Web site. And it is therefore very important for advertisers to make people notice any disclosures as these represent the additional information you present to consumers that isn’t given directly in the ad; it’s your opportunity to avoid any accusation of misleading information on your products or services.
The duty of advertising managers is to oversee the activity of advertising and promotion staffs. Usually they also serve as liaison officers between the firm and its clients. The task of advertising managers in larger agencies is to handle in-house accounts and take charge of the media department.
Marketing of products is the objective of a firm and it is up to the advertising manager to come up with market research, strategies and mode of implementation to reach this goal. Part of the responsibility of an advertising manager is to handle public relations work for the firm to ensure that it is always set in good light.
You may think that there’s no such thing as online advertising laws. Even though the internet is relatively new, the same laws on traditional advertising apply on the web. Be sure you check the U.S. Federal Trade Commission’s (FTC) online promotion guidelines and online advertising laws before you start promoting your products or services online.
FTC is doing its best to stamp out fraud and deception that might diminish consumer confidence in the e-marketplace.
FTC Act on prohibition on “unfair or deceptive acts or practices” includes advertising claims, marketing and promotional activities, and sales practices in general. This Act is not limited to a particular medium.
PubMatic provides services that publishers have been waiting for. Pubmatic marketing materials promise to give your online earning a boost by 20% to 90% which can save you a lot more time in the process also. This is also good news to many bloggers and entrepreneurs. In particular, PubMatic will be of help for you to access information from four various ad network account in just a single place. Similar to RSS reader, PubMatic will make life easier for you because it can bring your favorite website into one place aggregating information regarding your ad revenues collecting and bringing them to a simple dashboard.
With the advent of Web 2.0 technology, the ways of utilizing the Internet has become part and parcel of every major industry. One of the newest innovations to capture the imagination of the advertising and marketing industry is the Podcast. Podcast is not another form of infomercial where you try to hard sell your product by giving all the benefits and savings by purchasing it. Rather, in Podcast, you give free and helpful information to listeners regardless whether they buy your product or not.
This way of advertising gives people a feeling of flexibility and further appreciation for your product by keeping in their minds your business through the information you provides rather than forcing them to buy products from you. This creates more loyal customers for your company and the far reaching effects of a Podcast cannot be denied.
The main rule of advertising is truthful, non-deceptive, fair and claims must be backed with evidence. Based on this, most common questions that arise are:
1. What makes it deceptive?
2. How is it unfair?
3. What is the basis for their claim?
To determine whether it is deceptive or unfair, the point of view of a reasonable consumer is taken. It may be considered deceptive of unfair if it misleads the consumer in deciding on whether to buy a certain product. It must not imply anything that it cannot substantiate with scientific evidence that is both reliable and competent.
Free items are promotional devices used to attract customers. When a product has a free offer, the price of the pruchased product must not be increased from its regular price. Besides that, if a product is “free” or offered at a lower cost along with the purchase of another item, the advertisement must clearly disclose all terms and conditions of the promotion. Important information like terms affecting the offer’s cost must be placed near the advertised price.
Advertisements promoting rebates should state the before-rebate price and the amoung of the rebate. This way, consumers have the information they need to make comparisons. Rebate ads should also disclose other conditions and terms including additional fees and when consumers should expect to receive the rebate.
The Fair Credit Reporting Act requires that consumer reporting agencies (CRAs), such as credit bureaus and resellers of consumer reports should provide information to its creditors, employers, insurers, and others, do so with due regard for the confidentiality, accuracy, and legitimate use of such data. When those parties take adverse action on the basis of information in a credit report, they must identify the CRA that provided the report so that the consumer can learn how to get a copy to verify or question its accuracy and completeness. Creditors and others may not knowingly provide false information to CRAs, which are required to maintain reasonable procedures to guarantee the maximum possible accuracy of their data.
(Source:FTC.gov)
It’s delusory to misrepresent either directly or indirectly, that a product offers a general environmental benefit. Your ads should qualify broad environmental claims or should avoid them altogether to prevent deception about the specific nature of the benefit. Furthermore, your ads shouldn’t imply significant environmental benefits if the benefit isn’t significant. For example, a trash bag is labeled “recyclable” without qualification. Because trash bags ordinarily are not being separated from other trash for recycling from a landfill or incinerator, it is unlikely that they will be used again. Technically, the bag may be “recyclable,” but the claim is deceptive because it asserts an environmental benefit where there is no remarkable or meaningful benefit.
(Source:FTC,gov)