Advertising and Marketing Law refers to the body of laws and regulations that apply to all marketing and promotional activities and must be adhered to by businesses and business owners.
Naturally, effective marketing is key to the success of any business, but all companies have a legal obligation to ensure that any claims or representations they make in their advertising claims are truthful, not deceptive, or in some other way violate the law.
The Federal Trade Commission (FTC) regulates advertising and marketing practices in the United States. Its regulations govern several issues relating to how businesses market their goods and services, including labeling, telemarketing, and claims related to products (such as health-related claims).
"Truth in advertising" is the principle that advertising claims must be truthful and non-deceptive. In the U.S., the law requires that the advertisers point out "material" differences between products that would not be obvious to the average consumer. Similarly, the Federal Trade Commission Act and equivalent state laws prohibit unfair and deceptive acts or advertisements in or affecting commerce, referred to as "unfair or deceptive acts or practices." This helps ensure that consumers can make informed decisions.
