{"id":4562,"date":"2016-04-04T10:47:33","date_gmt":"2016-04-04T15:47:33","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-operations\/fair-advertising-faq-a-guide-for-small-business.html"},"modified":"2023-09-05T01:00:00","modified_gmt":"2023-09-05T06:00:00","slug":"fair-advertising-faq-a-guide-for-small-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/fair-advertising-faq-a-guide-for-small-business.html","title":{"rendered":"Fair Advertising FAQ: A Guide for Small Business"},"content":{"rendered":"\n
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Fair Advertising FAQ: A Guide for Small Business<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last reviewed\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Without advertising, small businesses would have no way of letting anyone know their products and services exist. Advertising is critical to business operations. Small business owners devote as much time and effort to selling their brand as they do to creating their products. That’s the whole point of being an American business.<\/p>\r\n

The government encourages small businesses to expand and advertise. At the same time, regulations restrict the types of advertising you can have. No matter what type of business you are, you must obey fair advertising laws.<\/p>\r\n

Frequently Asked Questions About Advertising<\/h2>\r\n

There are dozens of FAQ help lists about advertising and the law. Here are some of the most common about fair advertising and what makes an ad "deceptive and misleading"\u2014the kind that gets businesses into trouble.<\/p>\r\n

Who regulates truth in advertising?<\/h3>\r\n

The Federal Trade Commission (FTC) is a government agency that oversees advertising and commerce. Under the Federal Trade Commission Act, the FTC creates guidelines and enforces federal laws to protect consumers from false or misleading advertising claims. These truth-in-advertising laws also provide penalties for overt fraud and scams perpetrated by criminals.<\/p>\r\n

What does the law say?<\/h3>\r\n

The FTC Act section 45(a)<\/a> says that:<\/p>\r\n

"Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful."<\/p>\r\n

What does that mean?<\/h3>\r\n

It means that advertising for products and services must be truthful and honest. A business may not deceive buyers about the safety of their products, the content, the warranty, or make any unreal or deceptive claim that may affect their decision to buy the product.<\/p>\r\n

In other words, an advertisement or business practice must follow certain rules:<\/p>\r\n