FTC Ad FAQ 21

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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.

	Infomercials
	Internet Advertising
	Jewelry
	Leasing
	Made in the U.S.A.

Infomercials

Does the FTC have any special policies relating to infomercials?

Infomercial advertisers must have proof to back up all express and implied claims that reasonable consumers would take from an ad. In addition, advertisers should make sure that the infomercial doesn't deceptively mimic the format of news reports, talk shows, or other independent programming. Many FTC cases have required companies to clearly disclose that "THE PROGRAM YOU ARE WATCHING IS A PAID ADVERTISEMENT FOR [NAME OF PRODUCT]" at the beginning of an infomercial and before ordering information is given. Since many infomercials feature endorsements from consumers, celebrities, or experts, see the FTC's Guides Concerning the Use of Testimonials and Endorsements for more information.

My company produces infomercials for other businesses. What responsibility do we have to make sure that the claims are truthful?

The Commission looks at the facts of each case to determine whether the infomercial producers' role in the promotion makes them liable for deceptive claims in the ad. In many instances, the FTC has taken action against both the manufacturer or marketer of a product and the company that produced the infomercial. Therefore, infomercial producers should ask for materials to back up the claims in the ad. The bottom line: no one involved in the promotion of a product or the dissemination of an ad -- whether it's an infomercial, print ad, catalogue, or broadcast spot -- should look the other way when the claims seem questionable.

Internet Advertising

Is advertising over the Internet subject to the same laws as other advertising?

Yes. Ad claims on the Internet must be truthful and substantiated. See Marketing on the Internet: The Rules of the Road for more information. In addition, advertisers should be aware of the privacy issues raised by Internet marketing. For more information about recent FTC conferences on consumer privacy on the Internet, see Privacy Workshop.

Jewelry

Are there special guides for advertising jewelry?

The FTC's Jewelry Guides cover claims made for gold, silver, platinum, pewter, diamonds, gemstones, and pearls and define how certain common terms may be used in ads. For example, the Guides explain when a product can be called "gold plated" or when a diamond can be called "flawless." For more information, seethe FTC's Guides for the Jewelry, Precious Metals, and Pewter Industries.

Leasing

What information must a company include when advertising leases for cars, household goods, or other products?

The Consumer Leasing Act and Regulation M include specific rules that apply to ads for consumer leases. For example, if a lease advertisement includes certain terms -- such as the amount of any payment due before or at lease inception -- the ad also must make other clear and conspicuous mandatory disclosures about the terms of the lease. These rules also apply if the ad contains phrases like "no money down" or "no down payment." For more information, see Advertising Consumer Leases.

Made in the U.S.A.

When can my company advertise that our product is "Made in the U.S.A."?

A product has to be "all or virtually all made in the United States" for it to be advertised or labeled as "Made in the U.S.A." For more information, see the Enforcement Policy Statement on U.S. Origin Claims.

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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