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Like all businesses, manufacturers and retailers of children's products must comply with advertising laws and regulations. Advertising laws protect consumers by requiring advertisers to be truthful about their products.
Failure to comply with advertising laws can result in costly enforcement actions and civil penalties. Advertising must be truthful and non-deceptive; Advertisers must have evidence to back up their claims; and Advertisements cannot be unfair.
State and local governments also regulate advertising, and enforcement is usually the responsibility of a state's attorney general, a consumer protection agency or a local district attorney. Additionally, the Lanham Act is a federal false advertising statute that provides a key cause of action for a competitor.
In determining whether an advertisement violates the FTCA, the FTC looks at an advertisement from the viewpoint of a "reasonable consumer," which is what a typical person looking at an ad understands is being communicated.
The FTC looks at an advertisement in the context of its words, phrases, and pictures to determine what it conveys to consumers. Advertisements directed to children are evaluated from a child's point of view, as opposed to that of an adult. The FTC is particularly interested in advertisements aimed towards children because they may be more vulnerable to certain kinds of deception.
Advertisements cannot mislead consumers about the benefits of the product being sold. This standard applies to express claims stated in an advertisement, in addition to implied claims.
For example, a television commercial showing a toy remote control car speeding through a house accompanied by the sound of a revving engine implies that the toy car makes the sounds represented in the commercial. Even if the commercial depicted a disclaimer stating "sound effects added, product makes no sounds," it is still misleading because the depiction of the toy car accompanied by revving engine sounds in the commercial implies that it does make sounds.
This would be especially true when children in the target advertising demographic for the commercial are unable to read.
The toy car would actually need to be able to make sounds in order for the advertisement to be truthful. Advertisers of children's products who fail to comply with advertising laws risk receiving complaints by consumers, industry groups, and competitors, and investigation by the FTC.
Endorsements The prohibition against deceptive advertising applies to endorsements as well. The FTC's Guides apply to all types of media, including blogs and social media, and provide that endorsements must be truthful, non-deceptive, and substantiated by the advertiser.
Both advertisers and endorsers can be liable for false or unsubstantiated statements made in endorsements.
An endorsement is "any advertising message including verbal statements, demonstrations, or depictions of the name, signature, likeness or other identifying personal characteristics of an individual or the name or seal of an organization that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser, even if the views expressed by that party are identical to those of the sponsoring advertiser.
If there is a connection between an endorser and a marketer that consumers would not expect, and it would affect how consumers evaluate the endorsement, that connection should be disclosed. For example, if a video game company paid an endorser to produce YouTube videos endorsing a video game, but the endorser did not disclose that it was being paid for its seemingly objective opinions about the video games, this would be deceptive.
Consumers should be able to determine whether they are looking at an authentic opinion or a paid marketing pitch.issue of children's privacy online, while giving more time to industry to prove it can regulate itself before calling for general privacy legislation.
In the last few days . 11 days ago · But CARU, relying on its Children’s Advertising Guidelines, noted that those advertising to children were responsible for all reasonable interpretations of an ad by the children. Children's Food and Beverage Advertising Initiative (United States) Code of Marketing of Food and Non-alcoholic Beverages to Children (Mexico) Consolidated International Chamber of Commerce Code of Advertising and Marketing.
Advertising Review Unit (CARU) as a self-regulatory program to promote responsible children’s advertising. CARU is administered by the Council of Better Business Bureaus (CBBB) and funded by members of the children’s advertising industry.
CARU’s self-regulatory program sets high standards for the industry to assure that. Application of the Children's Advertising Review Unit (CARU) of the Council of Better Business Bureaus, Inc.
"The FTC is seeking public comment on an application for safe harbor treatment under the Rule from the Children's Advertising Review Unit ("CARU") of the Better Business Bureau. The Children’s Advertising Review Unit (CARU), a unit of the Advertising Self-Regulatory Council, is the advertising industry’s primary self-regulatory organization responsible for monitoring ad content – across all media channels – directed at children.