The Federal Trade Commission Act can impose the following penalties on a deceptive ad, depending on the nature of the violation.
Cease and desist. This legally-binding order requires the company to stop running the ad and/or the practice, to pay a fine of $11,000 per day if the company violates the law, to have substantiation for any claims made in future ads and to report these to the FTC.
Civil penalties. This can range from thousands to millions of dollars, depending on the violation. Some advertisers give partial or full refunds to those who purchased their product.
Corrective advertising. Advertisers are required by the law to take down the new ad, correct the misleading information, notify consumers about the deceptive claims, and include disclosures in future ads.
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