Making Sure Your Business Complies with Advertising Laws

Competition between similar businesses can be fierce, which encourages business owners to play fast and loose with advertising. The problem is that there are advertising laws, and you could be subjecting yourself to monetary liability if you fail to comply. If you're going to pay for advertising space, you should make sure that you or your advertising department stays abreast of new rules and regulations to make sure that your business complies with advertising laws.

Advertising Laws: Government Agencies
The FTC (Federal Trade Commission) is responsible for regulating and investigating breaches of advertising laws. If your business is found not to be in compliance with these laws, you could face civil suits and requirements for printing an admission of deceptive advertising. Don't assume that you simply bury individual complaints in paperwork because government agencies - specifically the FTC - can take action against your company.

Advertising Laws: False Promises
Many advertising lawsuits involve false promises, which can be either intentional or mistakes. For example, let's say that your company produces a product that gets rid of certain types of outdoor pests. If you say in your advertising that your product eliminates all pests, you could be subject to liability. Don't make any statements in your advertising that aren't true, and make sure that you can back them up. Even if you make an unintentional mistake, you could be subject to liability.

Advertising Laws: Guarantees
You've probably seen advertisements for products and services that have a "100% Money-Back Guarantee". This is powerful advertising, but is a problem if you don't deliver. Don't advertise a money-back guarantee with the assumption that everyone will be satisfied. If you are contacted within the appropriate amount of time, you must issue a refund for the product or service. You should also know that if your guarantee doesn't have a time limit stated, you can't impose one at a later date. Everything must be disclosed in the ad, or you open yourself up to liability.

Advertising Laws: Visual Images
Have you ever ordered a product at a fast food restaurant and then opened the wrapper to discover that it doesn't look anything like it did in the advertisements? Although this is comparitively minor example, you shouldn't advertise a product that looks different in the advertisement than it will in the customer's hands.

Advertising Laws: Slamming the Competition
Regardless of what you might think of the products and services offered by competing businesses, it is not okay to slam the competition in your advertisement. Not only is it unethical, but you could also face a defamation lawsuit. The only exception is if a reputable third party (such as a research firm) as completed a study comparing your product to that of your competitor(s)'. You can publish the results of the study in your ad, but be sure you don't add any subjective comparisons.

Advertising Laws: Endorsements
Many companies use the names, images or quotes of celebrities in the promotion of their products or services. This is fine, as long as you have obtained permission. Using the names, likenesses or trademarks of people or places without their permission could land you in serious hot water. Most celebrities and companies have permissions departments to whom you can write.

Advertising Laws: Beware the Word "Free"
Anytime you use words like "free" or "complimentary", you enter dangerous territory. For one thing, Americans are indoctrinated to believe that nothing is free, which is usually the case, so it won't really help your advertising much to say so. Secondly, if the product or service isn't really free, you could wind up with a civil suit for false advertising.