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A variety of laws and rules set the standards for the types of claims you can make about an advertised product or service. Some of the standards apply to claims about price information. Although the laws can be complex, the simple notion of "truth in advertising" offers a good guide for what is permitted.
Advertising is important to a business to attract customers and generate revenues. Consumers and their advocates generally accept advertising as long as it is providing complete and honest information. They are less tolerant of misleading or deceptive advertisements and may sue a business, whether or not the deception was intentional. In addition to federal laws, each state has its own consumer-protection regulations, which businesses must follow carefully to stay out of trouble.
The New York State Insurance Department sets rules and regulations on all insurers that operate or do business within the state through the New York Codes, Rules and Regulations (NYCRR). Rules for advertising apply to television and radio advertising and printed and published material in publications, sales literature and sales presentations. Besides identifying themselves and their company in all advertisements, insurance agencies have to follow a number of rules to comply with New York State insurance regulations.
"A diamond is forever." An advertising executive coined this phrase for the De Beers jewelry company in 1947. If a diamond is forever, so are some of the problems caused by the diamond industry. The work of diamond miners sometimes results in serious injuries or the loss of lives, especially in areas that have few laws to protect workers from hazardous conditions.
Regulations on fake or misleading food products in advertising are commonly known as truth-in-advertising laws. These laws are protect the consumer, but loopholes exist that allow advertisers to embellish their products to look good for the cameras.
Advertising in the mortgage business can be a tricky endeavor, especially if you do not understand the intricate mortgage advertising laws you must follow. While you may be tempted to exaggerate the positive qualities of your mortgage loans to attract prospective borrowers, you must become intimately aware of the federal and state laws that govern exactly how you present the mortgage products offer. Failure to disclose mortgage details accurately and in accordance with advertising laws cannot only affect your business's reputation, but it can also result in serious penalties, such as hefty fines and even loss of your mortgage-lending license.
Medical advertising laws have been around since as early as 1906, when the Food and Drugs Act was first implemented. This was the first of more than 200 laws seeking to protect consumers from harmful medical marketing practices. The Food and Drugs Act paved the way for the Food and Drug Administration, the major governing body of medical advertising in the United States. The healthcare and pharmaceutical industries continue to be among the most highly-regulated industries in the United States, with several laws, programs and codes in place to help regulate medical advertising.
All forms of business advertising, whether on billboards or on-line, are regulated by federal laws enforced by the government. The Federal Trade Commission, created in 1914, is a federal body responsible for enforcing business advertising laws. In short, the FTC executes these regulations to protect consumers and to advance fairness in commerce. Breaking business advertisement laws enforced by the FTC can lead to penalties and costly fines.
