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The Federal Trade Commission publishes a summary of advertising rules.  The rules discussed in this FTC FAQ  apply to web site ads.

Disclosures and Disclaimers

Does FTC law specify how disclaimers or disclosures must appear in ads?

Some laws and regulations enforced by the FTC, such as the 900 Number Rule, the Truth in Lending Act, and the Consumer Leasing Act, have specific requirements that apply to advertising, including that certain information must be "clearly and conspicuously" disclosed. For more information, see Complying with the 900 Number Rule; How to Advertise Consumer Credit: Complying with the Law; and Advertising Consumer Leases.

How prominent does a disclaimer or disclosure have to be in other kinds of ads?

Advertisers can't use fine print to contradict other statements in an ad or to clear up misimpressions that the ad would leave otherwise. For example, if an ad for a diet product claims "Lose 10 pounds in one week without dieting," the fine-print statement "Diet and exercise required" is insufficient to remedy the deceptive claim in the ad. When a disclosure or disclaimer is necessary to prevent an ad from being deceptive, it must be clear and prominent enough for reasonable consumers to see it, hear it, and understand it. Although there is no hard-and-fast rule about the size of type or the length of time a disclosure must appear on TV, the FTC often has taken action when a disclaimer or disclosure is too small, flashes across the screen too quickly, is buried in other information, or is otherwise hard for consumers to understand. Most importantly, if you are concerned that a disclaimer or disclosure may be necessary to clarify a claim, evaluate your ad copy and substantiation carefully.

Drug Advertising

The FTC handles most matters regarding claims in advertisements for OTC drugs. The Food and Drug Administration (FDA) handles most matters regarding the labeling of over-the-counter drugs. As with any other product, claims for OTC drugs must be truthful and non-deceptive. Given the health and safety issues that can arise in marketing these products, advertisers should take care in substantiating their claims. Depending on the claim, advertisers may be required to back up their representations with competent and reliable scientific evidence, including testing, studies, or other objective data. For more information about labeling OTC drugs, see www.fda.gov or call the FDA Inquiry Line, (800) 532-4440.

No. The FDA handles most matters related to the advertising of prescription drugs. For more information about marketing prescription drugs, see www.fda.gov or call the FDA Inquiry Line, (800) 532-4440.

Endorsements and Testimonials

The FTC's Guides Concerning the Use of Testimonials and Endorsements offer practical advice on endorsements by consumers, celebrities, and experts. All endorsements must reflect the honest experience or opinion of the endorser. Endorsements may not contain representations that would be deceptive, or could not be substantiated, if the advertiser made them directly.

Energy Savings Claims

The FTC's Appliance Labeling Rule and the R-Value Rule address energy savings claims for appliances, lighting products, and insulation. For example, under these rules, energy efficiency claims in ads must be based on specific standardized tests.

Environmental Advertising

The FTC's Guides for the Use of Environmental Claims cover how words like biodegradable, recyclable, and environmentally friendly can be used in ads. In addition, some states have laws governing environmental claims. Check with the attorney general's office of the states where you plan to advertise. The phone numbers are in the Consumer's Resource Handbook.

The above article was reprinted from the Federal Trade Commission's web site on April 16, 2001.  Check the FTC web site for changes to the article.

This page was last modified on July 22, 2007.

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