How Small Businesses Can Comply with Advertising Laws

Truth in Advertising

The Federal Trade Commission (FTC) is the main federal agency that enforces advertising laws and regulations. Under the Federal Trade Commission Act:

• Advertising must be truthful and non-deceptive;
• Advertisers must have evidence to back up their claims; and
• Advertisements cannot be unfair.

Additional laws apply to ads for specialized products like consumer leases, credit, 900 telephone numbers, and products sold through mail order or telephone sales. State and local governments also regulate advertising, and enforcement is usually the responsibility of a state attorney general, a consumer protection agency or a local district attorney. In addition, check out information on how to legally advertise alcoholic beverages, automobiles, computer/internet, and housing/real estate.

The FTC also has an advertising guide that explains how to comply with laws covering truth-in-advertising, marketing, and product labeling laws and regulations. The site also has industry-specific guidance documents that include policy statements, workshops and notifications issued by the FTC on a variety of advertising laws and regulations.

Think you want to use testimonials or endorsements? Check out this guide on how to advertise using endorsements from customers, experts and critical reviews.

State and Local Advertising Guidelines

Individual states and some localities have also passed specific truth-in-advertising laws. The Consumer Action Handbook provides links to state and local agencies responsible for enforcing truth-in-advertising and related consumer protection laws.

Advertising Seminars

The FTC offers a seminar series called Green Lights & Red Flags: FTC Rules of the Road for Advertisers, a “back to basics” workshop about complying with truth-in-advertising laws. These workshops are offered nationwide about complying with federal truth-in-advertising laws. There is also free educational material provided as a supplement.