Operation Full Disclosure! FTC’s Frontal Assault On Ads

In this blog we often discuss products being subjected to a lawsuit based on allegations that a label is false or misleading under California's consumer protection laws.  The Federal Trade Commission is similarly concerned with the prevention of false and misleading claims, but its focus is also on the product's advertising, not just its labeling.

Recently, FTC sent warning letters to more than 60 companies – including 20 of the 100 largest advertisers in the country – saying that the companies failed to make adequate disclosures.  The initiative, called Operation Full Disclosure, was brought after the agency reviewed national television and print advertisements.

The inadequate disclosures fell into different categories – from not adequately disclosing the conditions for obtaining a stated price (such as an automatic billing feature or the need to buy an additional product or service), to claiming that a product was unique or superior but not disclosing the narrow