The FTC Act and Advertising on the Internet

The Federal Trade Commission Act (FTCA) sets the rules for online advertising under the authority of the United States Federal Trade Commission (FTC), as the primary consumer protection agency. According to the FTCA, online advertisement, as any other paper-based or TV advertising, must be truthful and must not mislead consumers. The FTCA prohibits unfair or deceptive acts or practices, and they have filed lawsuits against online advertisers that engage in these practices. Additionally, United States law requires that written warranties for products sold online must be conspicuously placed at the point of purchase on the webpage. These regulations fall under Title 16 of the Code of Federal Regulations Part 702 -Pre-Sale Availability of Written Warranty Terms.

The following questions have been addressed in this article:

What constitute adequate disclosure for online advertising?
What factors must be evaluated to determine if the disclosure is clear and conspicuous?
Can I use a hyperlink to provide the warranty information in order to comply with these requirements?
What are the criteria for providing warranties?


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