Truth In Advertising - AgEBB

Truth In Advertising

By Joey Findley
Undergraduate Student In Agricultural Economics 333, W96
And
By Deanne Hackman
Research Associate and Adjunct Instructor
Social Science Unit, College of Agriculture, Food, and Natural Resources
University of Missouri - Columbia

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April 30, 1996

CAUTION: Do not rely upon this information for legal advice. See an attorney for legal counseling tailored to your specific situation and needs.

As technology advances throughout the world, we as consumers of many products need to be aware of the laws protecting us from false advertising. From watching commercials on television to placing the latest order from direct response, we need to be informed. Whether it involves product demonstrations or product fulfillment, the government is working in our favor.

The Federal Trade Commission, better known as the FTC, works to keep advertising honest. However, companies in many cases keep themselves honest to promote good business relations and prevent lawsuits as they can be liable for misrepresentation of their products. At the same time, businesses are out to make money and getting an edge on a competitor could be of priority.

The Federal Trade Commission has rules that attempt to keep product demonstrations honest such as no tolerance for mock-ups or props in commercials. The only exception to this rule is if the actual feature does not withstand what it must go through in recording. For example, if the foam in a glass of beer cannot withstand the photographic lights in recording, shaving cream may be used. But the catch is that the shaving cream cannot exaggerate the typical length the foam stays on a glass of beer.

In addition, no special techniques, lenses, or angles are allowed in taping that may exaggerate or give a product extra features that are nonexistant in reality. An interesting example of deceptive product demonstrations is when Campbell's Soup Company was caught putting marbles in the bottom of the bowl of soup for taping. This made all of the contents of the soup raise to the top.

Whether it be soup, beer, or other agriculturally related product, companies must be prepared to meet FTC regulations or pay the price. However, if the FTC is the only fine to be paid that would be considered lucky, as a consumer lawsuit would not be so quiet. A consumer has potential to sue for actions such as fraud that could lead to bigger problems for a company.

Product fulfillment is an issue easier to regulate as this can have an immediate effect on profits for a company. However, federal and state regulations are out there making sure customers product orders are what they claim to be. The Federal Trade Commission has an Mail Order Rule that businesses must follow. These regulations mostly involve basic customer service practices such as, delivering a product in the time the advertisement states, and if the advertisement does not give a time period the FTC says it must be delivered thirty days after a completed order. If for some reason the product is not available for delivery in thirty days, the company must contact the customer to make sure they still want the product.

Product fulfillment is not as difficult to enforce as product demonstration because the fulfillment regulations must be near common practice for a company or their profits will show the poor customer service. Product demonstration is something a company could benefit from if they got away with it because it could them great advantage over a product.

Now when watching television or reading a magazine, one can be assured that the Federal Trade Commission has tabs on what the advertisement is showing and it has previously proved its validity to the FTC. One is also protected from backorder after backorder on products that there may no longer be a needed by the customer. Product demonstration and product fulfillment regulations are important to each of us, and especially important as we move more rapidly into the technology of different ways to order products or see advertisements such as the internet.
Source: http://www.webcom.com/...ose/article/