FTC Issues Warning to Deceptive Advertisers
Posted on behalf of Phillips Law Group on Sep 24, 2014 in Class Action Lawsuits
The Federal Trade Commission announced today that it sent out a warning letter to more than 60 companies warning them of their failures to make adequate disclosures about their products in television and print ads. These letters went to companies who have advertised across the country, including at least 20 of the country's largest 100 advertisers.
The FTCs investigation, known as Operation Full Disclosure, focused on advertisements which concealed important consumer information in the fine print or in hidden parts parts of advertisements.
The FTC warned advertisers about specific problematic ads, as well as recommended that the companies review all other advertising to look for violations.
Disclosures Must Be Noticeable
According to FTC regulations, disclosures in advertisements need to be close to the claims to which they relatenot buried in the background. Disclosures on television ads need to be on the screen long enough to be noticed, read, and understood, and should not be obscured by other elements of the advertisement.
Many of the objectionable ads quoted a price or free trial period for a product, but did not adequately disclose hidden conditions for receiving that price. Others did not disclose issues relating to the safety or legality of a service. Still others made false claims, or included a demonstration of a product that had been materially altered.
The warnings went out to companies who advertise all kinds of products in both English and Spanish. While the FTC did not name the businesses which received the warnings, the Commissions press release about the subject should serve to put all advertisers on notice that disclosures must be clear and conspicuous.
Did a Deceptive Ad Lead to Your Injury?
The FTC works to ensure that advertisers are honest about the risks of their products. When a company fails to disclose known risks which could be dangerous to the consumer, that company is responsible for the subsequent harm its products caused.
From household products to pharmaceutical medications, the Phillips Law Group has worked to hold companies responsible for deceptive advertisements which harm consumers. If you have injured by a product with a deceptive or hidden warning, you may be eligible for compensation. Call or text 1-800-706-3000 to speak with the experienced personal injury lawyers at Phillips Law Group today.