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FTC Advertising FAQ

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

Food Advertising

The FTC handles most matters regarding claims in food advertisements. The FDA handles most matters regarding food labels. For guidance on how the FTC evaluates claims made in food ads, see the Enforcement Policy Statement on Food Advertising. For information about product labeling, see www.fda.gov or call the FDA Inquiry Line, (800) 532-4440. For information about meat and poultry, see the Department of Agriculture (USDA) homepage, or call the USDA's Center for Nutrition Policy and Promotion, (202) 418-2312.

Food and Drug Administration

When are claims regulated by the Federal Trade Commission and when are they regulated by the Food and Drug Administration?

The FTC and the FDA have a long-standing liaison agreement to allocate their efforts efficiently. As a general rule, advertising for foods, over-the-counter drugs, dietary supplements, medical devices, and cosmetics is regulated by the FTC. Labeling for these products is regulated by the FDA. In addition, the FDA handles most matters related to prescription drug advertising and labeling. For more information about marketing a product within the FDA's jurisdiction, see www.fda.gov or call the FDA Inquiries Line, (800) 532-4440.

Franchises and Business Opportunities

What rules apply to ads for franchises or business opportunities?
The FTC's Trade Regulation Rule on Franchises and Business Opportunities ("Franchise Rule") governs the sale of franchises and business opportunities. The law requires sellers to make specific disclosures, give prospective buyers a document containing certain key information about the business opportunity, and be able to substantiate any earnings claims. For more information about buying or selling franchises and business opportunities, see the Franchise Rule. In addition, many states have laws governing these transactions. Check with the attorney general's office in the states where you plan to advertise. The phone numbers are in the Consumer's Resource Handbook.

Free Claims

When a "free" offer is tied to the purchase of another product, the price of the purchased product should not be increased from its regular price. For more information, see the FTC's Guides Concerning Use of the Word "Free" and Other Representations and the Guides Against Deceptive Pricing. You also may want to check with the attorney general's office in the states where you plan to advertise. The phone numbers are in the Consumer's Resource Handbook. In addition, the Better Business Bureau has voluntary standards for when something can be advertised as "free."

Guarantees

If an ad mentions that a product comes with a guarantee or warranty, the ad should clearly disclose how consumers can get the details. Any conditions or limits on the guarantee or warranty (such as a time limit or a requirement that the consumer return the product) also must be clearly disclosed in the ad. For more information, see the FTC's Guides for the Advertising of Warranties and Guarantees.

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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