Marketing on the Internet: Legal Rules of the Road

The Internet is connecting advertisers and marketers to customers from Boston to Bali. If you're thinking about advertising on the Internet, remember that many of the same rules that apply to other forms of advertising apply to electronic marketing.

The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. The FTC has determined that a representation, omission or practice is deceptive if it is likely to:

1. Mislead consumers and

2. Affect consumers' behavior or decisions about the product or service.

In addition, an act or practice is unfair if the injury it causes is:

1. Substantial

2. Not outweighed by other benefits and

3. Not reasonably avoidable.

The FTC prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that's not true. For example, a lease advertisement for an automobile that promotes "$0 Down" may be misleading if significant and undisclosed charges are due at lease signing.

In addition, claims must be substantiated, especially when they concern health, safety, or performance. The type of evidence may depend on the product, the claims, and what experts believe necessary. If your ad specifies a certain level of support for a claim - "tests show X" - you must have at least that level of support.

Other points to consider:

Disclaimers and disclosures must be clear and conspicuous. That is, consumers must be able to notice, read or hear, and understand the information. Still, a disclaimer or disclosure alone usually is not enough to remedy a false or deceptive claim.

Testimonials and endorsements must reflect the typical experiences of consumers, unless the ad clearly and conspicuously states otherwise. A statement that not all consumers will get the same results is not enough to qualify a claim. Testimonials and endorsements can't be used to make a claim that the advertiser itself cannot substantiate.

If your ad uses phrases like "satisfaction guaranteed" or "money-back guarantee," you must be willing to give full refunds for any reason. You also must tell the consumer the terms of the offer.

Non-Compliance

If you fail to follow these rules, you run the risk of being prosecuted by the FTC. Successful prosecutions typically result in injunctions against your site and damages awarded in the amount of $11,000 PER VIOLATION.

Richard Chapo is the lead attorney for the law firm http://www.SanDiegoBusinessLawFirm.com - a firm providing legal advice to California businesses. This article is for general education purposes and does not address every facet of the subject matter. Nothing in this article creates an attorney-client relationship.

In The News:


pen paper and inkwell


cat break through


Does Your Internet Marketing Pull?

"Pull Marketing" has always been, and will continue to be... Read More

Repetition: The Secret to Visibility and Attention!

Have you ever felt disappointment and dismay when trying a... Read More

How To Increase Your Web Profits by Cutting the Hype

'Hype' is now an often used slang word which is... Read More

Shopping Search Engines, The Benefits and Explanations

The Shopping Search Engines are a new breed on the... Read More

Internet Marketing: 10 Ingenious Secret Strategies To Explode Your Sales

Marketing on the internet is getting harder and harder daily.It... Read More

Internet Marketing - You Have to Give a Little to Make a Little

Internet marketing by definition is "the use of the Internet... Read More

How To Be An Internet Marketing Champion

How bad do you want to make money on the... Read More

10 Resourceful Ways to Recycle Digital or Small-ticket Products

Have your product sales slowed down? Do you want to... Read More

Ways To Outsell Your Competition

Competition is fierce on the Internet. There are a multitude... Read More

The Budget Webmasters Guide to Increased Credibility - Part One

Hey, I just noticed something. I've been sitting here filling... Read More

Joint Ventures: Five Powerful Tips for Building JV Relationships

One of the best and fastest ways to build your... Read More

Internet Marketing: 10 Killer Internet Marketing Tips To Multiply Your Sales

Hello, do you feel low because sales at your website... Read More

Internet Marketers and Two-Year-Olds: Just Toddling Around Asking Lots of Questions

I recently noticed that my friend's two-year-old, Conor, is getting... Read More

The Power of Taglines: Take My Tagline Test!

An effective logo/tagline combination can be one of the best... Read More

Internet Profits Revealed: The Simple Philosophy that Works

Why is profiting on the Internet so hard for most... Read More

The Five Golden Keys To Massive Passive Income

You can earn a large monthly passive income with a... Read More

Internet Marketing ? Long Term Strategy

Once your site is up and running, the best method... Read More

Resources For Staying Current of IT Advancements For Online Business Owners

The internet and associated technology changes at a relatively fast... Read More

Five Step In To A Successful Online Shopping Business..

Before you set out to explore the online shopping market... Read More

How Do You Live the Internet Dream? Automate, Automate, Automate!

There's no doubt that one of the things that excited... Read More

Becoming A Successful Internet Entrepreneur

You're motivated to run your own business, aren't you?If you're... Read More

Internet Marketing In A Room FULL Of Naked Men!

NO, that's not one of my secret dreams :-) It's... Read More

The Power of Buzz

How did Hotmail gain over 12 million subscribers in 18... Read More

How to Track Online Marketing ROI Using Cost-Per-Action

Forget clicks, page views, and impressions; the only way to... Read More

Online Sales: 10 Incredible Online Sales Tactics To Make Your Sales Soar

Are you interested in making your online sales soar like... Read More

Internet Marketing for Dummies!

There are many people every day jumping into the online... Read More

It Really is only early Days in the Internet Gold Rush....

One of the questions that I am getting more and... Read More

How Internet Marketeres Can Create Their Own Powerful Niche... Even In an Over-Crowded Industry!

For some reason, people who look to the internet to... Read More

Advertising That Yields the Best Results

In today's world, online advertising is KEY to the success... Read More

Internet Marketing Reality Check

There are thousands of web sites, books, CD-ROM's, cassette tapes... Read More

Outsourcing Your Web Marketing

The online world is constantly evolving. You may be thinking... Read More

5 Secrets to Building a Successful Internet Business

Everyday I talk with people who want to get started... Read More

6 Basic Principals Every Online Business Owner Should Know

The fact that you're reading this article shows your interest... Read More