Whether your business is a mom and pop operation or has a multistate presence, it is important to be familiar with the applicable state and federal advertising laws. This article outlines basic advertising rules — where they come from and how they operate — and offers tips on how to make sure your business is in compliance. Where Advertising Law BeginsThe advertising rules that dictate what businesses can and can’t say in ads come from applicable state and federal laws. Typically, these laws focus on truth in advertising, deceptive advertising practices, and unfair advertising. State and federal laws and agencies aim to curb these advertising practices, require businesses to be truthful about their products or services, and to substantiate claims that they make in advertisements. There is a fine, but generally clear, line between a business making unsubstantiated claims (which violate the law) and simply making subjective boasts about their product. For example, you can claim to have the best tasting coffee, but you cannot advertise that everyone who drinks your coffee loves it or that drinking your coffee will help you live longer. Federal & State Law and EnforcementThe Federal Trade Commission (FTC) enforces advertising laws at the federal level, and every state also has a consumer protection agency which enforces state advertising laws. Additionally, the state attorney general and district attorney have the power to litigate against companies whose advertising harms citizens within their jurisdiction. FTC Advertising LawsUnder the watchful eye of the FTC, the following general advertising rules must be followed: Federal Lanham ActWhile the FTC enforces consumer protection laws on behalf of consumers, the Lanham Act allows business competitors to privately sue advertisers for false advertising. The Lanham Act principally concerns violation of trademark law, but competitors can also file lawsuits for false advertising. To sue under the Lanham Act, you must prove the following: Utah Advertising LawAs mentioned, each state also has its own set of consumer protection laws which protect consumers against unfair competition and deceptive advertising practices. Whereas under federal law consumers have very limited rights to sue, under state laws, consumers typically have more power to privately sue companies for false or deceptive advertising. Be Honest In Your AdvertisingTelling the truth is the simplest rule, but is also where the most trouble comes from. Slight exaggerations and boasting (“the best coffee!”) are expected and for the most part allowed in advertisements, but don’t get too tricky with your wording or rely on technicalities to remain truthful. For example, you might be able to truthfully say that your tent is great in rainy conditions, but don’t extend the assertion to wind if you haven’t tested it or it just stands up to a slight breeze. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
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