You are here: Home  FTC Actions FTC Ad FAQ Rules 31 - 34

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

Rainchecks

According to the FTC's Retail Food Store Rule, grocers must offer rainchecks or product substitutes of comparable value when they run out of advertised items. They also can comply by ordering quantities of the item sufficient to meet reasonably anticipated demand or by disclosing in ads that items are available only in limited quantities or only at some stores. Although the specific terms of the Rule apply only to retail food stores, other companies advertising products available in limited quantity or only at some stores may want to make similar disclosures to reduce the risk of deception. For more information, see Retail Food Store Advertising and Marketing Practices.

Sales

When may a company advertise that a product is "on sale"?

The same standards for truthfulness apply when a company makes advertising claims about sale prices or products being "on sale." For more information, see the FTC's Guides Against Deceptive Pricing. Since this issue often involves local practices, you may also want to contact the attorney general's office in the states where you plan to advertise. The phone numbers are in the Consumer's Resource Handbook.

The short answer is: only when a store is going out of business. It would be deceptive to advertise a "going out of business sale" when a store is not going out of business. If a store in your area is advertising what looks to be a bogus "going out of business sale," contact your state attorney general's office. The phone number is in the Consumer's Resource Handbook.

Telemarketing

What rules must a company follow if it sells goods or services over the telephone?

As with any other form of advertising or promotion, claims made through telemarketing must be truthful and substantiated. In addition, the FTC's Telemarketing Sales Rule applies to transactions involving the use of interstate telephone calls to sell goods or services. The Rule requires companies to make specified disclosures in their telephone calls and prohibits misrepresentations. For more information, see Complying with the Telemarketing Sales Rule.

Tobacco Advertising

The FTC can take action if an ad for cigarettes or a smokeless tobacco product is deceptive or unfair. The FTC also enforces various federal laws requiring health warnings on print ads for cigarettes and smokeless tobacco, as well as on packaging. In addition, federal law prohibits the advertising of cigarettes, smokeless tobacco, and little cigars on radio, TV, or other form of electronic media regulated by the Federal Communications Commission. For more information, see Tobacco Products: Fast Facts.

This page was last modified on July 22, 2007.

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