Claims made on the label of a product are among the practices addressed by advertising law.
Today's product advertising laws evolved out of the federal government's early attempts to check monopolies and prevent unfair trade restraints. Beginning in 1890, these efforts gradually expanded into regulation of all national advertising for products sold in interstate commerce. The laws can be categorized according to the federal agencies charged with enforcing them, including the Federal Trade Commission, Federal Communications Commission, and Food and Drug Administration.
Federal Trade Commission
Established in 1914, the FTC is a five-member body that takes the lead in advertising law enforcement. Its most important responsibility is to identify and root out claims that have the potential to deceive consumers. When the FTC receives a complaint about an advertising claim, investigators require the advertiser to provide substantiation, or supporting evidence. A company that cannot provide sufficient validation will usually stop using the challenged claim voluntarily. However, if the advertiser does not act on its own, the FTC has the power to force withdrawal of the questionable ad.
Federal Communications Commission
This seven-member Federal Communications Commission, formed in 1934, has jurisdiction over the broadcast industry. Its role in enforcing advertising laws is indirect but powerful. The FCC can revoke existing broadcast licenses or deny initial licensure to a radio or television station if it airs advertising that violates the law. Regulations under the purview of the FCC pertain to obscenity, profanity and other advertising content judged offensive or otherwise contrary to the public interest. The agency also monitors potential fraud on the airwaves.
Food and Drug Administration
The Food and Drug Administration, originally created as part of the U.S. Department of Health and Human Services, has jurisdiction over advertising and other materials used to promote food, drug, cosmetic and therapeutic products. For example, the FDA polices false labeling and packaging of these goods and oversees disclosure of specified ingredients. It can require special warning statements on certain hazardous products, like cleaning agents. The FDA plays a particularly prominent role in regulating direct-to-consumer advertising of prescription drugs.
Other Regulatory Bodies
More specialized product advertising laws fall under the jurisdiction of other government agencies. For example, the U.S. Postal Service is responsible for preventing fraud, misrepresentation and prohibited content in direct mail advertising. The Bureau of Alcohol, Tobacco, Firearms and Explosives oversees warning labels on products within its purview, and also plays a role in preventing misleading claims in advertising for these products. The Securities and Exchange Commission regulates the advertising of securities.
Tags: advertising laws, Communications Commission, Drug Administration, Federal Communications, Federal Communications Commission, Food Drug Administration