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
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/