WTF.T.C? The FTC is a bipartisan US federal agency with a dual mission to protect consumers and promote competition. It is therefore, similar to the Australian ACCC. The FTC protects consumers by stopping unfair, deceptive or fraudulent practices in the marketplace. The FTC conducts investigations, sue companies and people that violate the law, develop rules to ensure a vibrant marketplace, and educate consumers and businesses about their rights and responsibilities. In some cases, particularly where an Australian business or entrepreneur is having their product or brand attacked in the US based on deceptive advertising, the FTC may be a valuable ally. If a complaint is made and the FTC investigates, they have extremely broad investigatory powers. If deceptive conduct is found, they then have extremely broad powers including administrative litigation, resulting in a cease and desist order and/or corrective advertising OR Federal Court litigation, seeking preliminary/permanent injunction, redress/disgorgement and other equitable remedies. The FTC deems advertising or statements deceptive if they are misrepresentations that are material, likely to mislead consumers and acting reasonably under the circumstances from the point of view of the targeted group. It also covers both express and implied claims. A misrepresentation will be material if it likely to affect consumer choice and express claims are presumed to be material. A misrepresentation need only be likely to mislead, it need not prove that it actually deceive consumers. It is the net impression that is important so the FTC will consider the entire advertisement, transaction, or course of dealing as well as ineffective disclaimers or disclosures. The FTC also takes action where there is inadequate Substantiation of Objective Claims made in advertising. Claims must have “reasonable basis” prior to dissemination and for health and safety claims, adequate and well-controlled scientific studies with sound methodologies must be available. All in all, the FTC can be a valuable and powerful ally in the right circumstances and an option that should be considered in the case of advertising that is deceptive.
Posted on: Thu, 16 Oct 2014 04:13:28 +0000
Trending Topics
Recently Viewed Topics
© 2015