False advertising

Sulfur, with known anti-fungal, antibacterial and keratolytic activity, was used for acne vulgaris, rosacea, seborrheic dermatitis, dandruff, pityriasis versicolor, scabies and warts.^[4] This 1881 advertisement claimed efficacy against rheumatism, gout, baldness and gray hair.

Three male-sexual-function advertisements in an 1897 newspaper. One claims to restore "perfect manhood. Failure is impossible with our method". Another "will quickly cure you of all nervous or diseases of the generative organs, such as Lost Manhood, Insomnia, Pains in the Back, Seminal Emissions, Nervous Debility, Pimples, Unfitness to Marry, Exhausting Drains, Varicocele and Constipation".^[5]

False advertising can take one of two broad forms: an advertisement may be factually wrong, or intentionally misleading. Both types of false advertising may be presented in a number of ways.

Photo manipulation

Photo manipulation is a technique often used in the cosmetics field and for weight loss commercials^[6] to advertise false (or non-typical) results and give consumers a false impression of a product's capabilities. Photo manipulation can alter the audience's perception of a product's effectiveness;^[7] for example, makeup advertisements may use airbrushed photos.

Hidden fees and surcharges

Hidden fees can be a way for companies to trick unwary consumers into paying more for a product which was advertised at a specific price to increase profits without raising the price of the product.^[8] Fine print may be used to obscure fees and surcharges in advertising. Another way to hide fees is to exclude shipping costs when listing the price of goods online, making an item look less expensive than it actually is.^[9] A number of hotels charge resort fees, which are not typically included in the advertised price of a room.

Fillers and oversized packaging

Some products are sold with fillers, which increase the legal weight of a product with something that costs the producer very little compared to what the consumer thinks they are buying. Some food advertisements use this technique in products such as meat, which can be injected with broth or brine (up to 15 percent), or TV dinners filled with gravy (or other sauce) instead of meat. Malt and ham have been used as filler in peanut butter.^[10] Non-meat fillers may be high in carbohydrates and low in nutritional value; one example is cereal binder, which usually contains flours and oatmeal.^[11] Some products may come in a large container which is mostly empty, leading a consumer to believe that the total amount of food is greater than it is.^[12]

Falsifying quality and origin

Another form of deceptive advertising falsifies the quality or origin of a product. If an advertiser shows a product with a certain quality but knows the product has defects or is not of the same quality, they are falsely advertising the product. Producers may misrepresent where a product is manufactured, saying (for example) that it was produced in the United States when it was produced in another country.^[13]

Misleading health claims

The labels "diet," "low fat," "sugar-free," "healthy" and "good for you" are often associated with products which claim to improve health. Advertisers, aware of consumer desire to live healthier and longer, describe their products accordingly. Food advertising influences consumer preferences and shopping habits.^[14] Highlighting certain ingredients may mislead consumers into thinking they are buying healthy products when, in fact, they are not.^[15] Dannon's Activia yogurt was advertised as scientifically proven to boost the immune system, and was sold at a much higher price. The company was ordered to pay $45 million in damages to consumers after a lawsuit.^[16]

Food companies may end up in court for using misleading tactics such as:^[17]

• Using a "tick panel" above a nutritional label, with a large, bold font and brighter colors^[17]
• Highlighting one healthy ingredient on the front of a package with a large check mark (a "tick") next to it^[17]
• Using words like healthy and natural, which are regarded as weasel claims: words contradicting claims which follow them^[18][19]
• Using words like helps on product labels, which may mislead consumers into thinking a product will help^[17][20]

Many US advertisements for dietary supplements include the disclaimer, "This product is not intended to diagnose, treat, cure, or prevent any disease",^[21] since products intended to diagnose, treat, cure, or prevent disease must undergo FDA testing and approval.

Comparative advertising

Companies use a number of advertising techniques to assert that their products are the best available.^[22] One of the most common marketing tactics is comparative advertising, where "the advertised brand is explicitly compared with one or more competing brands and the comparison is obvious to the audience."^[23] Laws about comparative advertising have changed in the United States; perhaps the most drastic change occurred with the 1946 Lanham Act, the backbone of all cases involving false advertisement. Marketing strategies have become more aggressive, however, and the provisions of the Lanham Act became outdated.

USCA §1125 was passed in 2012 as an addition to the Lanham Act, clarifying issues about comparative advertising. Anyone who uses words, symbols or misleading descriptions of fact in commerce which are likely to cause consumer confusion about their own product, or misrepresents the nature, characteristics or qualities of their own (or another's) product, is civilly liable.^[24] USCA §1125 addresses gaps in the Lanham Act, but is not a perfect remedy. Advertisements that present false descriptions of fact are considered deceptive, with no additional evidence required; when an advertisement makes a factual (but misleading) claim, however, evidence of confusion of an average consumer is needed.^[25]

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Keratolytic

Keratolytic

Keratolytic therapy is a type of medical treatment to remove warts, calluses and other lesions in which the epidermis produces excess skin. In this therapy, acidic topical medicines, such as Whitfield's ointment or Jessner's solution, are applied to the lesion in order to thin the skin on and around it. This therapy causes the outer layer of the skin to loosen and shed.

Fine print

Fine print

Fine print, small print, or mouseprint is less noticeable print smaller than the more obvious larger print it accompanies that advertises or otherwise describes or partially describes a commercial product or service. The larger print that is used in conjunction with fine print by the merchant often has the effect of deceiving the consumer into believing the offer is more advantageous than it really is. This may satisfy a legal technicality which requires full disclosure of all terms or conditions, but does not specify the manner of disclosure. There is strong evidence that suggests the fine print is not read by the majority of consumers.

Filler (animal food)

Filler (animal food)

In processed animal foods, a filler is an ingredient added to provide dietary fiber, bulk or some other non-nutritive purpose.

Broth

Broth

Broth, also known as bouillon, is a savory liquid made of water in which meat, fish or vegetables have been simmered for a short period of time. It can be eaten alone, but it is most commonly used to prepare other dishes, such as soups, gravies, and sauces.

Brine

Brine

Brine is a high-concentration solution of salt in water. In diverse contexts, brine may refer to the salt solutions ranging from about 3.5% up to about 26%. Brine forms naturally due to evaporation of ground saline water but it is also generated in the mining of sodium chloride. Brine is used for food processing and cooking, for de-icing of roads and other structures, and in a number of technological processes. It is also a by-product of many industrial processes, such as desalination, so it requires wastewater treatment for proper disposal or further utilization.

Malt

Malt

Malt is germinated cereal grain that has been made to germinate by soaking in water and is then halted from germinating further by drying with hot air, a process known as "malting". Malted grain is used to make beer, whisky, malted milk, malt vinegar, confections such as Maltesers and Whoppers, flavored drinks such as Horlicks, Ovaltine, and Milo, and some baked goods, such as malt loaf, bagels, and Rich Tea biscuits. Malted grain that has been ground into a coarse meal is known as "sweet meal".

Ham

Ham

Ham is pork from a leg cut that has been preserved by wet or dry curing, with or without smoking. As a processed meat, the term "ham" includes both whole cuts of meat and ones that have been mechanically formed.

Peanut butter

Peanut butter

Peanut butter is a food paste or spread made from ground, dry-roasted peanuts. It commonly contains additional ingredients that modify the taste or texture, such as salt, sweeteners, or emulsifiers. Consumed in many countries, it is the most commonly used of the nut butters, a group that also includes cashew butter and almond butter.

Danone

Danone

Danone S.A. is a French multinational food-products corporation based in Paris. It was founded in 1919 in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company's products are branded Dannon in the United States.

Nutrition Labeling and Education Act of 1990

Nutrition Labeling and Education Act of 1990

The Nutrition Labeling and Education Act (NLEA) is a 1990 United States Federal law. It was signed into law on November 8, 1990 by President George H. W. Bush.

Food and Drug Administration

Food and Drug Administration

The United States Food and Drug Administration is a federal agency of the Department of Health and Human Services. The FDA is responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, caffeine products, dietary supplements, prescription and over-the-counter pharmaceutical drugs (medications), vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices (ERED), cosmetics, animal foods & feed and veterinary products.

Lanham Act

Lanham Act

The Lanham (Trademark) Act (Pub. L. 79–489, 60 Stat. 427, enacted July 5, 1946, codified at 15 U.S.C. § 1051 et seq. is the primary federal trademark statute of law in the United States. The Act prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising.

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Puffing (or puffery) is exaggerating a product's worth with meaningless or unsubstantiated terms, language based on opinion rather than fact,^[26] or the manipulation of data.^[27] Examples include superlatives such as "greatest of all time," "best in town," and "out of this world," or a restaurant's claim that it had "the world's best-tasting food."^[28]

Puffing is not an illegal form of false advertising, and may be seen as a humorous way to attract consumer attention.^[28] Puffing may be used as a defense against charges of deceptive advertising when it is formatted as opinion rather than fact.^[29] Omitted, or incomplete, information is characteristic of puffery.^[30]

Manipulation of terms

1932 Listerine advertisement. The FTC found that the claim of these advertisements, a reduced likelihood of catching cold, was false.

Terms used in advertising may be used imprecisely. Depending on the jurisdiction, "organic" food may not have a clear legal definition; "light" has been used to describe foods low in calories, sugars, carbohydrates, salt, texture, viscosity, or even light in color. Labels such as "all-natural" are frequently used, but essentially meaningless.

Before the Family Smoking Prevention and Tobacco Control Act, tobacco companies regularly used terms like low tar, light, ultra-light and mild to imply that such products had less detrimental effects on health. In 2009, the United States banned manufacturers from labeling tobacco products with these terms.^[31] When the U.S. United Egg Producers used an "Animal Care Certified" logo on egg cartons, the Better Business Bureau said that it misled consumers by implying a higher level of animal care than was actually the case.^[32]

In 2010, Kellogg's Rice Krispies cereal claimed that it could improve a child's immunity. The company was forced to discontinue such claims.^[33] In 2015, Kellogg's advertised its Kashi products as "all natural" when they contained a number of artificial ingredients; Kellogg's paid $5 million to settle a lawsuit.^[34]

Incomplete comparison

"Better" means that one item is superior to another in some way; "best" means that it is superior to all others in some way. Advertisers often fail to specify the basis on which products are compared (such as price, size or quality) and, in the case of "better," what the product is compared to (a competitor's product, an earlier version of their product, or nothing at all). Without defining the terms "better" and "best", they become meaningless. An ad that says, "Our cold medicine is better" could be claiming that it is an improvement over taking nothing at all. Another often-seen example is "better than the leading brand", with a statistic attached; the "leading brand", however, is undefined.

Inconsistent comparison

In an inconsistent comparison, an item is compared with others only in terms of favorable attributes; this conveys the false impression that it is the best of all products overall. One variant is a website which lists competitors whose price for a particular item is higher, ignoring competitors whose price is lower.

Misleading illustrations

A common example is the serving suggestion pictures on food-product boxes, which include ingredients other than those included in the package. The "serving suggestion" disclaimer is a legal requirement for an illustration including items not included in the purchase, but if a customer fails to notice (or understand) the caption they may assume that all depicted items are included.

Some advertised photos of hamburgers convey the impression that the food is larger than it really is, and foods are "styled" to appear unrealistically appetizing.^[35] Products sold unassembled or unfinished may have a picture of the finished product, without a picture of what the customer is actually buying. Video-game commercials may include what are essentially short CGI films, with considerably better graphics than the actual game.^[36]

False coloring

Consumers may buy an item based on the color they saw in an advertisement. When used to make people think food is riper, fresher, healthier, or otherwise more desirable than it really is, food coloring may be deceptive. When combined with added sugar or corn syrup, bright colors convey a subconscious impression of healthy, ripe fruit, full of antioxidants and phytochemicals.

One variation is packaging which obscures the color of the foods within, such as red mesh bags holding yellow oranges or grapefruit which then appear to be a ripe orange or red.^[37] Regularly stirring minced meat on sale at a deli can make the surface meat remain red (and appearing fresh) when it would oxidize (and brown), showing its true age if left unstirred. Some sodas are sold in colored bottles when the actual product is clear.

Angel dusting

Angel dusting is a process where an ingredient which would be beneficial in a certain quantity is added in an insignificant quantity, which would have no consumer benefit. The advertiser then says that the product contains that ingredient, misleading a consumer into expecting that they will experience the benefit. A cereal may claim that it contains "12 essential vitamins and minerals," but the amounts of each may be only one percent (or less) of the Reference Daily Intake and provide virtually no nutritional benefit.

Chemical free

A number of products are advertised with some form of the statement "chemical free" or "no chemicals." Because everything on Earth is made up of chemicals except for a few elementary particles formed by radioactive decay or present in minute quantities from solar wind and sunlight, a chemical-free product is impossible. The label can indicate that a product contains no synthetic or exceptionally-harmful chemicals but, because the word "chemical" carries a stigma,^[38] it is often used without clarification.

Bait-and-switch

Bait-and-switch is a deceptive marketing tactic generally used to lure customers into a store. A company will advertise a product in an attractive way (the bait). The product is not available for some reason, however, and the company will try to sell something more expensive than what was originally advertised (the switch). Although only a small percentage of shoppers will buy the more expensive product, an advertiser may still profit.^[39]

Bait advertising is also used in other contexts; in an online job advertisement, a potential candidate may be deceived about working conditions, pay, or other variables. An airline may "bait" a potential client with a bargain before raising the price or redirecting them to a more expensive flight.^[40]

Businesses can avoid charges of misleading or deceptive conduct by following a few guidelines:

• Reasonable time frame, reasonable quantities: Businesses must supply publicized merchandise or services at the promoted cost for a sensible (or expressed) time frame and in sensible (or expressed) amounts.
• Qualifying statements: Qualifying statements such as "in store and online now" could still leave a business open to charges of bait advertising if sensible amounts of the publicized item are not available.^[41]
• Advertising deadlines: When advertising products or prices which are available for a limited time, the deadline (or expiration) should be made clear to consumers.
• Rain checks: When (through no fault of its own) a business cannot supply merchandise or a service as promoted, it should provide the product (or service) as soon as it becomes available.
• Online claims: If a company operates primarily on the Internet, it must keep its website updated to avoid misleading customers.^[42]

In some countries, such as Australia, bait advertising can have severe legal penalties.^[43]

Guarantee without a remedy

If a company does not say what it will do if a product fails to meet expectations, it is generally free to do little or nothing. This is due to a legal technicality which states that a contract cannot be enforced unless it provides a basis for determining a breach and for providing a remedy for a breach.^[44] Fraud in crowdfunding communities such as Indiegogo and Kickstarter can be difficult to prosecute.^[45]

"No risk"

Advertisers can falsely claim that there is no risk in trying their product. They may charge a customer's credit card for a product, offering a full refund if not satisfied. However, the customer may not receive the product; they may be billed for things they did not want; they may be unable to call the company to authorize a return; they may not be refunded an item's shipping and handling costs, or they may have to pay for return shipping.

Acceptance by default

This refers to a contract (or agreement) in which a customer's lack of response is interpreted as a response in favor of the business; for example, a customer must opt-out of a particular feature (or service) or be charged for it. Subscriptions which automatically renew unless canceled may also constitute acceptance by default.

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Listerine

Listerine

Listerine is an American brand of antiseptic mouthwash that is promoted with the slogan "Kills germs that cause bad breath", Named after Joseph Lister, who pioneered antiseptic surgery at the Glasgow Royal Infirmary in Scotland, Listerine was developed in 1879 by Joseph Lawrence, a chemist in St. Louis, Missouri.

Federal Trade Commission

Federal Trade Commission

The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.

Calorie

Calorie

The calorie is a unit of energy that originated from the obsolete caloric theory of heat. For historical reasons, two main definitions of "calorie" are in wide use. The large calorie, food calorie, dietary calorie, or kilogram calorie was originally defined as the amount of heat needed to raise the temperature of one kilogram of water by one degree Celsius. The small calorie or gram calorie was defined as the amount of heat needed to cause the same increase in one gram of water. Thus, 1 large calorie is equal to 1000 small calories.

Carbohydrate

Carbohydrate

In organic chemistry, a carbohydrate is a biomolecule consisting of carbon (C), hydrogen (H) and oxygen (O) atoms, usually with a hydrogen–oxygen atom ratio of 2:1 and thus with the empirical formula Cm(H2O)n, which does not mean the H has covalent bonds with O. However, not all carbohydrates conform to this precise stoichiometric definition, nor are all chemicals that do conform to this definition automatically classified as carbohydrates.

Mouthfeel

Mouthfeel

Mouthfeel refers to the physical sensations in the mouth caused by food or drink, making it distinct from taste. It is a fundamental sensory attribute which, along with taste and smell, determines the overall flavor of a food item. Mouthfeel is also sometimes referred to as texture.

Family Smoking Prevention and Tobacco Control Act

Family Smoking Prevention and Tobacco Control Act

The Family Smoking Prevention and Tobacco Control Act, is a federal statute in the United States that was signed into law by President Barack Obama on June 22, 2009. The Act gives the Food and Drug Administration the power to regulate the tobacco industry. A signature element of the law imposes new warnings and labels on tobacco packaging and their advertisements, with the goal of discouraging minors and young adults from smoking. The Act also bans flavored cigarettes, places limits on the advertising of tobacco products to minors and requires tobacco companies to seek FDA approval for new tobacco products.

Health effects of tobacco

Health effects of tobacco

Tobacco use has predominantly negative effects on human health and concern about health effects of tobacco has a long history. Research has focused primarily on cigarette smoking.

Egg carton

Egg carton

An egg carton is a carton designed for carrying and transporting whole eggs.

Better Business Bureau

Better Business Bureau

Better Business Bureau (BBB) is a private, 501(c)(6) nonprofit organization founded in 1912. BBB's self-described mission is to focus on advancing marketplace trust, consisting of 97 independently incorporated local BBB organizations in the United States and Canada, coordinated under the International Association of Better Business Bureaus (IABBB) in Arlington, Virginia.

Animal husbandry

Animal husbandry

Animal husbandry is the branch of agriculture concerned with animals that are raised for meat, fibre, milk, or other products. It includes day-to-day care, selective breeding, and the raising of livestock. Husbandry has a long history, starting with the Neolithic Revolution when animals were first domesticated, from around 13,000 BC onwards, predating farming of the first crops. By the time of early civilisations such as ancient Egypt, cattle, sheep, goats, and pigs were being raised on farms.

Kellogg's

Kellogg's

The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including crackers and toaster pastries, and markets their products by several well-known brands including Corn Flakes, Rice Krispies, Frosted Flakes, Pringles, Eggo, and Cheez-It. Kellogg's mission statement is "Nourishing families so they can flourish and thrive."

Kashi (company)

Kashi (company)

Kashi is a maker of whole grain cereals and other plant-based foods sourced from regular farming practices. Founded in San Diego in 1981, the company makes over 90 products sold in the U.S. and Canada. Its original cereal, discontinued in 2021, was identified by the tagline "Seven Whole Grains on a Mission". The company name is a blended term derived from "kashruth", meaning kosher or pure food, and "Kushi", the last name of the founder of American macrobiotics, Michio Kushi.

Mirror neurons

Marlboro-barcode subliminal advertising on Fernando Alonso's Ferrari F10

Mirror neurons are found in several sections of the human brain.^[46] They are responsible for mirroring a behavior (or movement) seen in others. In marketing, mirror neurons have been used to stimulate consumers to do what those in advertisements do.

Subliminal advertising

In subliminal advertising, products (or ideas) are advertised to consumers without their knowledge. Its purpose is to induce a consumer to buy an advertised item while they are unaware that they are being influenced into making a purchase. This form of advertising exploits a consumer's sub-limenal state.^[47]

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Fernando Alonso

Fernando Alonso

Fernando Alonso Díaz is a Spanish racing driver currently competing for Aston Martin in Formula One. He won the series' World Drivers' Championship in 2005 and 2006 with Renault, and has also driven for McLaren, Ferrari, and Minardi. With Toyota, Alonso won the 24 Hours of Le Mans twice, in 2018 and 2019, and the FIA World Endurance Championship in 2018–19. He also won the 24 Hours of Daytona with Wayne Taylor Racing in 2019.

Mirror neuron

Mirror neuron

A mirror neuron is a neuron that fires both when an animal acts and when the animal observes the same action performed by another. Thus, the neuron "mirrors" the behavior of the other, as though the observer were itself acting. Such neurons have been directly observed in human and primate species, and in birds.

Limen

Limen

In physiology, psychology, or psychophysics, a limen or a liminal point is a sensory threshold of a physiological or psychological response. It is the boundary of perception. On one side of a limen a stimulus is perceivable, on the other side it is not.

United States

The United States federal government regulates advertising through the Federal Trade Commission^[48] (FTC) with truth-in-advertising laws^[49] and enables private litigation through a number of laws, most significantly the Lanham Act (trademark and unfair competition).

The goal is prevention rather than punishment, reflecting the difference between civil and criminal law. A typical remedy is ordering an advertiser to stop its illegal acts, or to include disclosure of additional information which eliminates potentially-deceptive material. Corrective advertising may be mandated,^[50][51] but no fines or prison time is imposed except for the rare instances where an advertiser refuses to stop despite an order to do so.^[52]

In 1905, Samuel Hopkins Adams released a series of articles detailing misleading claims by the patent medicine industry. The public outcry resulting from the articles led to the creation of the Food and Drug Administration the following year.^[53]

In 1941, the Supreme Court reviewed Federal Trade Commission v. Bunte Bros, Inc. under Section 5 of the Federal Trade Commission Act of 1914 with regard to "unfair or deceptive acts or practices".^[54] The court reviewed three false-advertising cases in 2013 and 2014: Static Control v. Lexmark (concerning who may sue under the Lanham Act), ONY, Inc. v. Cornerstone Therapeutics, Inc.^[55] and POM Wonderful LLC v. Coca-Cola Co.

State governments have a number of unfair-competition laws which regulate false advertising, trademarks, and related issues. Many are similar to those of the FTC, and may be copied so closely that they are known as "little FTC acts."^[56] According to the National Consumer Law Center, the laws – known as "unfair, deceptive, or abusive acts and practices laws" (UDAAP or UDAP laws)^[57] – vary widely in the protection they offer consumers.^[58] In California, one such statute is the Unfair Competition Law (UCL).^[59] The UCL "borrows heavily from section 5 of the Federal Trade Commission Act", and has developed a body of case law.^[60]

Civil penalties may range from thousands to millions of dollars, and advertisers are sometimes ordered to provide all customers who purchased the product with a partial (or full) refund. Corrective advertising, disclosures, and other informational remedies may also be ordered. Advertisers may have to warn buyers of false statements in advertisements, make clear disclosures in future advertisements, or provide customers with other information to correct misinformation in an original ad.^[61]

United Kingdom

Advertising in the UK is regulated under the Consumer Protection from Unfair Trading Regulations 2008^[62] (CPR), the de facto successor of the Trade Descriptions Act 1968. It is designed to implement the Unfair Commercial Practices Directive, part of a common set of European minimum standards for consumer protection which legally bind advertisers in England, Scotland, Wales, and parts of Ireland.^[63][62] The regulations, which focus on business-to-consumer (B2C) interactions, are modeled with a table meant to assess unfairness. Evaluations are made against four tests in the regulations which indicate deceptive advertising:

• Contrary to the requirements of professional diligence
• False or deceptive practice in relation to a specific list of key factors
• Omission of material information (unclear or untimely information)
• Aggressive practice by harassment, coercion or undue influence

These elements of deceptive advertising may impair a consumer's ability to make an informed decision, limiting their freedom of choice. The system resembles FTC regulation of behavioral advertising in prohibiting false and deceptive messaging, unfair and unethical commercial practices, and omitting important information; it differs in monitoring aggressive sales practices (regulation seven), which include high-pressure practices which go beyond persuasion. Harassment and coercion are not defined but rather interpreted as any undue physical and psychological pressure (in advertising). Each case is analyzed individually, allowing the authority to promote compliance with its enforcement policies, priorities, and available resources.

The CPR mandates different standards authorities for each country:

• In England and Wales, standards offenses are handled by the Local Authority Trading Standards Services (TSS).
• In Northern Ireland, offenses are handled by the Department of Enterprise, Trade and Investment.
• In Scotland, offenses are evaluated (and potentially prosecuted) by the Crown Office and the Procurator Fiscal Service on behalf of the Lord Advocate.

Australia

The Australian Competition and Consumer Commission (also known as the ACCC) is responsible for ensuring that all businesses and consumers act in accordance with the Australian Competition & Consumer Act 2010 and fair-trade and consumer-protection laws (ACCC, 2016).^[64] Each state and territory has its own consumer-protection or consumer-affairs agency:^[64]

• ACT - Office of Fair Trading (OFT)^[65]
• NSW - Fair Trading^[66]
• Queensland – Office of Fair Trading^[67]
• South Australia - Office of Consumer and Business Services (CBS)^[68]
• Tasmania - Consumer Affairs & Fair Trading^[69]
• Consumer Affairs Victoria (CAV)^[70]
• Western Australia - Department of Commerce^[71]

The ACCC is designed to assist consumers, businesses, industries, and infrastructure nationwide. It assists the consumer by making available the rights, regulations, obligations, and procedures for refunds and returns, complaints, faulty products, and guarantees of products and services. They also develop laws and guidelines in relation to unfair practices and misleading or deceptive conduct.^[64]

There are many similarities in the laws and regulation between the Australian ACCC, New Zealand's FTA, the U.S. FTC, and the United Kingdom's CPR. The goals of these policies are to support fair trade and competition and to reduce deceptive and false practices in advertising. A number of countries have agreements with the International Consumer Protection and Enforcement Network (ICPEN).^[72]

New Zealand

The Fair Trading Act 1986 aims to promote fair competition and trading in New Zealand.^[73][74] The act prohibits certain conduct in trade, provides for the disclosure of information available to the consumer relating to the supply of goods and services, and regulates product safety. Although it does not require businesses to provide all information to consumers in every circumstance, businesses are obliged to ensure that the information they provide is accurate and important information is not withheld from consumers.^[73][75]

A number of sales practices intended to mislead consumers are illegal under the Fair Trading Act.^[76][75] The act also applies to certain activities whether or not the parties are "in trade," such as employment advertising, pyramid selling, and supplying products covered by product-safety and consumer-information standards.^[73]

Consumers and businesses can rely on and take legal action under the act. Consumers may contact the trader and assert rights stated in the act. If the issues are not resolved, the consumer (or anyone else) can take legal action under the act. The Commerce Commission is also empowered to take enforcement action when allegations are sufficiently serious to meet its criteria.

There are also four consumer-information standards:^[75]

• Country of Origin (Clothing and Footwear) Labeling Regulations 1992
• Fiber Content Labeling Regulations 2000
• Used Motor Vehicles Regulations 2008
• Water Efficiency Regulations 2010

India

The voluntary Advertising Standards Council of India (ASCI) was established in 1985 to evaluate the truth and fairness of advertisements. The ASCI also aims to ensure that ads are respectful to widely-accepted public decency principles. It has a number of codes, including the Press Council Act of 1978, the News Broadcasters Association's Code of Conduct, the Young Persons Act of 1956, the Consumer Protection Act of 1986, the Drugs and Cosmetics Act of 1940, and the Food Safety and Standards Act of 2006.^[77] Surrogate advertising a major misleading advertising tactic in India. Many companies use this idea to advertise Betting, Gambling, online fantacy gaming and casino apps.^[78]

Discover more about Regulation and enforcement related topics

Federal Trade Commission

Federal Trade Commission

The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.

Lanham Act

Lanham Act

The Lanham (Trademark) Act (Pub. L. 79–489, 60 Stat. 427, enacted July 5, 1946, codified at 15 U.S.C. § 1051 et seq. is the primary federal trademark statute of law in the United States. The Act prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising.

Patent medicine

Patent medicine

A patent medicine, sometimes called a proprietary medicine, is an over-the-counter (nonprescription) medicine or medicinal preparation that is typically protected and advertised by a trademark and trade name and claimed to be effective against minor disorders and symptoms. Its contents are typically incompletely disclosed. Antiseptics, analgesics, some sedatives, laxatives, and antacids, cold and cough medicines, and various skin preparations are included in the group. The safety and effectiveness of patent medicines and their sale is controlled and regulated by the Food and Drug Administration in the United States and corresponding authorities in other countries.

Food and Drug Administration

Food and Drug Administration

The United States Food and Drug Administration is a federal agency of the Department of Health and Human Services. The FDA is responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, caffeine products, dietary supplements, prescription and over-the-counter pharmaceutical drugs (medications), vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices (ERED), cosmetics, animal foods & feed and veterinary products.

Federal Trade Commission Act of 1914

Federal Trade Commission Act of 1914

The Federal Trade Commission Act of 1914 is a United States federal law which established the Federal Trade Commission. The Act was signed into law by US President Woodrow Wilson in 1914 and outlaws unfair methods of competition and unfair acts or practices that affect commerce.

POM Wonderful LLC v. Coca-Cola Co.

POM Wonderful LLC v. Coca-Cola Co.

POM Wonderful LLC v. Coca-Cola Co., 573 U.S. 102 (2014), was a United States Supreme Court case that held that a statutory private right of action under the Lanham Act is not precluded by regulatory provisions of the Food, Drug, and Cosmetic Act.

National Consumer Law Center

National Consumer Law Center

The National Consumer Law Center (NCLC) is an American nonprofit organization headquartered in Boston, Massachusetts, specializing in consumer issues on behalf of low-income people. Legal services, government and private attorneys, as well as community organizations, work with the center to advocate for consumer reform.

California Unfair Competition Law

California Unfair Competition Law

In addition to federal laws, each state has its own unfair competition law to prohibit false and misleading advertising. In California, one such statute is the Unfair Competition Law (“UCL”), Business and Professions Code §§ 17200 et seq. The UCL "borrows heavily from section 5 of the Federal Trade Commission Act" but has developed its own body of case law.

Civil penalty

Civil penalty

A civil penalty or civil fine is a financial penalty imposed by a government agency as restitution for wrongdoing. The wrongdoing is typically defined by a codification of legislation, regulations, and decrees. The civil fine is not considered to be a criminal punishment, because it is primarily sought in order to compensate the state for harm done to it, rather than to punish the wrongful conduct. As such, a civil penalty, in itself, will not carry jail time or other legal penalties. For example, if a person were to dump toxic waste in a state park, the state would have the same right to seek to recover the cost of cleaning up the mess as would a private landowner, and to bring the complaint to a court of law, if necessary.

Consumer Protection from Unfair Trading Regulations 2008

Consumer Protection from Unfair Trading Regulations 2008

The Consumer Protection from Unfair Trading Regulations 2008 is a statutory instrument in the United Kingdom made under the European Communities Act 1972. It came into force on 26 May 2008. It is effectively the successor to the Trade Descriptions Act 1968, which it largely repeals. It is designed to implement the Unfair Commercial Practices Directive, as part of a common set of European minimum standards for consumer protection.

Retail

Retail

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit. Retailers are the final link in the supply chain from producers to consumers.

FTC regulation of behavioral advertising

FTC regulation of behavioral advertising

The United States Federal Trade Commission (FTC) has been involved in oversight of the behavioral targeting techniques used by online advertisers since the mid-1990s. These techniques, initially called "online profiling", are now referred to as "behavioral targeting"; they are used to target online behavioral advertising (OBA) to consumers based on preferences inferred from their online behavior. During the period from the mid-1990s to the present, the FTC held a series of workshops, published a number of reports, and gave numerous recommendations regarding both industry self-regulation and Federal regulation of OBA. In late 2010, the FTC proposed a legislative framework for U.S. consumer data privacy including a proposal for a "Do Not Track" mechanism. In 2011, a number of bills were introduced into the United States Congress that would regulate OBA.