Advertising Interview Question:

How does the FTC determine if an ad is deceptive?

Submitted by: Administrator

The FTC looks at the ad from the point of view of the "reasonable consumer" -- the typical person looking at the ad. Rather than focusing on certain words, the FTC looks at the ad in context -- words, phrases, and pictures -- to determine what it conveys to consumers. The FTC looks at both "express" and "implied" claims. An express claim is literally made in the ad.

For example, "ABC Mouthwash prevents colds" is an express claim that the product will prevent colds. An implied claim is one made indirectly or by inference. "ABC Mouthwash kills the germs that cause colds" contains an implied claim that the product will prevent colds. Although the ad does not literally say that the product prevents colds, it would be reasonable for a consumer to conclude from the statement "kills the germs that cause colds" that the product will prevent colds.

Under the law, advertisers must have proof to back up express and implied claims that consumers would take from an ad. The FTC looks at what the ad does not say -- that is, if the failure to include information leaves consumers with a misimpression about the product. For example, if a company advertised a collection of books, it would be deceptive if the ad did not disclose that what consumers actually would receive were abridged versions of those books.
Submitted by: Administrator

The FTC looks at whether the claim would be "material" -- that is, important to a consumer's decision to buy or use the product. Examples of material claims are representations about a product's performance, features, safety, price, or effectiveness. The FTC looks at whether the advertiser has sufficient evidence to support the claims in the ad. The law requires those advertisers have proof before the ad runs.
Submitted by: Administrator