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Truth in advertising laws have been implemented in order to ensure integrity of companies and protect consumers from false or misleading claims. According to the Federal Trade Commission (FTC) ads must be “truthful, not misleading, and, when appropriate, backed by scientific evidence.” Truth in advertising laws cover any form of advertising including print ads, online ads, billboard ads, radio ads, and television commercials.
In general, truth in advertising requires that any claims made in an advertisement or product description must be substantiated. Common examples of claims that must be supported include health claims and ingredient claims. If a product is claiming that it in some way improves, treats, or prevents disease or health conditions it may not only violate truth in advertising laws but may also run afoul of the U.S. Food and Drug Administration (FDA).
If a company is found to have falsely advertised a product there are a number of potential harms that can occur. First, the FTC may require that all product currently in the stream of commerce be recalled or advertising campaigns be canceled until the ads and product are brought into compliance with the law. Second, there are a number of financial penalties and fines that are assessed against the offending company. Finally, there are civil lawsuits and class actions that may be filed by consumers who were deceived by the false advertising and are seeking compensation.
In general, the best way to ensure compliance with truth in advertising laws is to avoid misleading or unsubstantiated claims. If a product is intended to have a medical function, clear it with the FDA and back up the claims with third-party studies. If a product is being advertised for its key ingredient, ensure that the end product contains a substantial amount of that ingredient.
Consumers who believe that a company is violating truth in advertising laws can file a report to the FTC. If the deceptive or misleading claim is about medical or health information, a report may also be made to the FDA.
