Avoid Deceptive Internet Advertising Claims With These 3 Factors

The Federal Trade Commission ("FTC") and state attorneys general have made clear that businesses that engage in "misleading" or "deceptive" advertising will face stiff penalties, including fines. If you use the Internet to market products or services, you need to be aware of the laws applicable to deceptive advertising.

First and foremost, you must be certain that all marketing claims are truthful and substantiated (for example, clinical studies that support health and beauty product claims are necessary). This will often require that you include certain disclosures in your advertising. All disclosures that are necessary to prevent an advertisement from being considered deceptive or misleading must be presented both clearly and conspicuously. When evaluating whether a disclosure is clear and conspicuous, the FTC advises advertisers to consider the following three factors: