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.
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.
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)
Advertising must be truthful and not deceptive and advertisers must be able to back up any claims with evidence.
A deceptive ad usually contains a statement or omits information that is important to the buying decision and is apt to mislead consumers. A health or safety claim must be proven by reliable scientific evidence before the running the ad.
If an ad could possibly cause substantial consumer injury that cannot be avoided, and is not compensated by the product’s benefits, it is deemed as unfair.
Ads which include product guarantees, refunds and exchange policies, are closely monitored by federal and state regulations. This also includes product claims that consumers cannot easily evaluate on their own.
Image source www.career.brooklyn.cuny.edu
Labor law violations are considered a serious matter and are punishable by law. Employees must know what their rights are and how to assert them in the workplace.
Here are just a few of the important rights that employees must be aware of:
- The right to be protected from any form of discrimination – the term “discrimination” is a very broad term and encompasses a wide aspect of our lives. No person should be discriminated at work because of his/her sex, gender, sexual preference, pregnancy, beliefs, age, disability, etc.
- The right to a harassment-free workplace – everyone deserves to work in a place where one would feel safe from any form of harassment
- The right to fair pay – there are a lot of laws that protect your right to be paid no less than the minimum wage, to be paid a premium for working overtime or over the usual maximum amount of hours per week.
The Internet provides unprecedented opportunities for the collection and sharing of information
from and about its consumers. But recent studies show that consumers have very strong concerns about the security and confidentiality of their personal information in the online marketplace. Many consumers also report being doubtful of engaging in online commerce, in part because they fear that their personal information can be misused.
These consumer concerns present an opportunity for you to build on consumer trust by implementing effective voluntary industry-wide practices to protect consumers’ information privacy. The FTC has held a number of workshops for industry, consumer groups and privacy advocates to explore industry guidelines to protect consumers’ privacy online.
(Source:FTC.gov)
The Franchise and Business Opportunity Rule strictly requires franchise and business opportunity sellers to give and inform its consumers a detailed disclosure document at least 10 days before the consumer pays any money or legally commits to a purchase. The document must include:
- the names, addresses, and telephone numbers of other purchasers;
- a fully-audited financial statement of the seller;
- the background and experience of the business’s key executives;
- the cost of starting and maintaining the business;
- the responsibilities of the seller and purchaser once the purchase is made.
Moreover, companies that make earnings representations must give consumers the written basis for their claims, including the number and percentage of owners who have done at least as well as claimed.
(Source:FTC.gov)
The FTC Act strictly prohibits unfair or deceptive advertising in any medium. Advertising either through media or net must tell the truth and not mislead its consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true at all. As an example, a lease advertisement for an automobile that promotes “$0 Down” may be misleading if significant and undisclosed charges are due at lease signing. Furthermore, claims must be substantiated, especially when they concern health, safety, or performance. If your ad specifies a certain level of support for a claim – “tests show X” – you must have at least that level of support. Sellers are responsible for claims they make about their products and services. Third parties – such as advertising agencies or website designers and catalog marketers – also may be liable for making or disseminating deceptive representations if they participate in the preparation or distribution of the advertising, or know about the deceptive claims of the seller.
(Source:FTC.gov)
