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Deceptive Practices In Advertising In Allegheny
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State:
Multi-State
County:
Allegheny
Control #:
US-000289
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Word;
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FAQ
Section 201-2 prohibits false advertising.
• The Federal Trade Commission (FTC) ◦ Section 5 of the FTC Act (15 U.S.C. § 45) prohibits deceptive advertising; the FTC is authorized to take action against misleading advertising, utilizing civil investigative demands, cease and desist orders, injunctive relief, and civil penalties.
False advertising is when a company says something about its products or services, either in an advertisement or a label, that is outright false. On the other hand, deceptive advertising is when a manufacturer makes statements that may be technically true in some sense, but are likely to deceive a reasonable consumer.
There are several commonly recurring defenses for false advertising claims. Statements that are opinion rather than false expressions of fact are not actionable. Mere puffery is also a defense. Exaggerated statements upon which a reasonable buyer would not rely are not actionable.
Section 5 of the Federal Trade Commission Act (FTC Act) (15 USC 45) prohibits ''unfair or deceptive acts or practices in or affecting commerce. '' The prohibition applies to all persons engaged in commerce, including banks.
These include civil penalties, cease and desist orders, restitution for consumers, and corrective advertising. States have supplemented common law with their own consumer protection acts, known as little FTC acts. Remedies are similar for state statutes, and private parties may bring lawsuits directly.
The FTC enforces these truth-in-advertising laws, and it applies the same standards no matter where an ad appears – in newspapers and magazines, online, in the mail, or on billboards or buses.
No exaggeration – Over-exaggerating the effects of a product is a big no-no. Stay far away from false claims. No news – Any and all advertising should be distinguishable from news. Sustainability & the environment – Sustainability is fast becoming the core of many companies' ethics.
The Unfair Trade Practices & Consumer Protection Law (UTPCPL) is a Pennsylvania statute that prohibits “unfair methods of competition” and “unfair or deceptive acts or practices.” The UTPCPL, along with its implementing regulations, are geared toward companies in the consumer product and service industries.
The UTPCPL also makes it an unfair or deceptive act or practice to engage in a “bait and switch” – advertising goods or services with intent not to sell them as advertised, or advertising them with intent not to supply the reasonably expectable public demand, unless the advertisement discloses a quantity limitation.