Legalities and Ethics in Advertising. Now that you know how to influence the public through advertising, what will you do with that power? SOURCE: http://www.poznaklaw.com/articles/falsead.htm POZNAK LAW FIRM LTD. . Two Conflicting Forces in the Constitution.
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Now that you know how to influence the public through advertising, what will you do with that power?SOURCE: http://www.poznaklaw.com/articles/falsead.htmPOZNAK LAW FIRM LTD.
To establish a violation under the Lanham Act, consumers and competitors must prove the following:
In addition to the FTC Act and the Lanham Act, which are federal statutes, most states, including Illinois, also have laws proscribing false advertising. Illinois is one of many states that has enacted the Uniform Deceptive Trade Practices Act. Under the Act, a "deceptive trade practice" includes the following:
If you are in the business of preparing marketing or advertising campaigns, you might want to get your client to guarantee that the information he or she provides is true, so that you will not be liable for information the client provides you.
CASE STUDY:Breast Enhancement Claims Inflated, FTC ChargesPromoters Must Pay $3 Millionfrom ConsumerAffairs.comhttp://consumeraffairs.com/news03/wellquest.htmlJuly 10, 2003Infomercial marketers Wellquest International, Inc. and Tony Hoffman Productions, Inc. have agreed to settle federal charges that they made false and unsubstantiated claims for three products - Bloussant, sold for breast enhancement; EnerX, sold for men's virility, and D-Snore, sold to relieve snoring - in violation of the FTC Act. "Marketers must have rigorous scientific substantiation for the claims they make," said Howard Beales, Director of the FTC's Bureau of Consumer Protection. "In this case, the claims were inflated, but the science just wasn't there."According to the complaint, the defendants' ads state that Bloussant stimulates breast cells to regenerate the growth process, thereby increasing breast size by two cups in most women. The FTC alleges that these claims are unsubstantiated. Additionally, it alleges that the defendants falsely claimed that Bloussant is clinically proven to increase bust size in the majority of women, and is clinically proven to be safe. Bloussant was heavily marketed in magazines, such as Mademoiselle, Elle, and Allure, in monthly direct mailers, and through infomercials that ran on 30 major cable stations and numerous broadcast stations, as well as on the Internet. Consumers responding to these advertisements were directed to call a toll-free telephone number, where the telemarketers often reiterated the challenged claims. Bloussant cost $220 for a two-month supply and $574 for an eight-month supply.
CASE STUDY:CrestorAztraZeneca, the maker of the cholesterol-lowering drug Crestor, has been accused of false advertising. According to the Food and Drug Administration (FDA), the drug company has printed misleading claims about Crestor's safety that state:A medication can be more effective and just as safe" -- this statement plays down the risks involved in taking a 40 mg dose of Crestor The FDA has confidence in the safety and efficacy of Crestor" -- this statement is not only misleading, but it suggest that the FDA does not feel the drug poses any safety concernsThe drug company's faulty advertisement, which ran in national and regional publications, also quoted a statement that was "supposedly" taken directly from the FDA's Web site. The statement read: "The scientists at the FDA who are responsible for the approval and ongoing review of Crestor have publicly confirmed that Crestor is safe and effective, and that the concerns that have been raised have no medical or scientific basis."