My company offers a money-back guarantee. Statements from satisfied customers usually are not sufficient to support a health or safety claim or any other claim that requires objective evaluation. Are letters from satisfied customers sufficient to substantiate a claim? In addition, any tests or studies must be conducted using methods that experts in the field accept as accurate. In most cases, ads that make health or safety claims must be supported by "competent and reliable scientific evidence" - tests, studies, or other scientific evidence that has been evaluated by people qualified to review it. If the ad isn't specific, the FTC looks at several factors to determine what level of proof is necessary, including what experts in the field think is needed to support the claim. For example, the statement "Two out of three doctors recommend ABC Pain Reliever" must be supported by a reliable survey to that effect. At a minimum, an advertiser must have the level of evidence that it says it has. The kind of evidence depends on the claim. A "reasonable basis" means objective evidence that supports the claim. What kind of evidence must a company have to support the claims in its ads?īefore a company runs an ad, it has to have a "reasonable basis" for the claims.
The law requires that advertisers have proof before the ad runs. The FTC looks at whether the advertiser has sufficient evidence to support the claims in the ad.Examples of material claims are representations about a product's performance, features, safety, price, or effectiveness. The FTC looks at whether the claim would be "material" - that is, important to a consumer's decision to buy or use the product. For example, if a company advertised a collection of books, the ad would be deceptive if it did not disclose that consumers actually would receive abridged versions of the books. The FTC looks at what the ad does not say - that is, if the failure to include information leaves consumers with a misimpression about the product. Under the law, advertisers must have proof to back up express and implied claims that consumers take from an ad. Although the ad doesn't literally say that the product prevents colds, it would be reasonable for a consumer to conclude from the statement "kills the germs that cause colds" that the product will prevent colds. "ABC Mouthwash kills the germs that cause colds" contains an implied claim that the product will prevent colds. An implied claim is one made indirectly or by inference. For example, "ABC Mouthwash prevents colds" is an express claim that the product will prevent colds. An express claim is literally made in the ad. The FTC looks at both "express" and "implied" claims. Rather than focusing on certain words, the FTC looks at the ad in context - words, phrases, and pictures - to determine what it conveys to consumers. The FTC looks at the ad from the point of view of the "reasonable consumer" - the typical person looking at the ad. How does the FTC determine if an ad is deceptive? it is not outweighed by the benefit to consumers.it causes or is likely to cause substantial consumer injury which a consumer could not reasonably avoid and.Is "material" - that is, important to a consumer's decision to buy or use the product.Īccording to the Federal Trade Commission Act and the FTC's Unfairness Policy Statement, an ad or business practice is unfair if:.Is likely to mislead consumers acting reasonably under the circumstances and.What makes an advertisement deceptive?Īccording to the FTC's Deception Policy Statement, an ad is deceptive if it contains a statement - or omits information - that: And every state has consumer protection laws that govern ads running in that state. Advertisers must have evidence to back up their claims andĪdditional laws apply to ads for specialized products like consumer leases, credit, 900 telephone numbers, and products sold through mail order or telephone sales.Advertising must be truthful and non-deceptive.What truth-in-advertising rules apply to advertisers? About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.
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