money sectionmoney sectionAdvertising is an essential part of any business. The message your company puts out to the public through marketing and advertising campaigns can help determine your company's success. While regulations and laws regarding how a business can advertise vary by state and even municipality, some laws are regulated at the federal level and are applied to all businesses. Knowing the advertising regulations that apply to your business will help you avoid legal issues associated with marketing your products.
"Pediatrics," the official journal of the American Academy of Pediatrics, reports that children younger than 8 years old lack the capacity to critically assess the commercials they see. They fail to recognize advertising messages as sales pitches, and often interpret commercials as truth. While the United States doesn't have much legislation controlling how companies can advertise to children, regulatory committees and corporate self-regulation in response to public pressure have changed how advertisers communicate with children.
Mortgage lenders and brokers depend on communicating with the public to attract customers, but they must adhere to specific, strict advertising regulations that are in effect to protect consumers from deceptive financing practices and predatory lending. Media advertising and borrower disclosure must be done according to state and federal laws. Borrowers must be fully aware of what their loans will cost them initially and throughout the life of their financing, and what their rights are as they enter into mortgage contracts.
The medical industry is one of the most highly-regulated industries in the business world, especially when it comes to marketing and advertising. The Food and Drug Administration (FDA) is responsible for developing rules and regulations for medical marketers. The FDA actually created a separate division, called the Division of Drug Marketing, Advertising, and Communications (DDMAC) to help do just that.
Before 1979, dentists were not allowed to advertise their services to the general public. A ruling by the Federal Trade Commission allowed for some types of advertising with a large list of restrictions and regulations. These restrictions are in place to ensure that dentists do not mislead with their claims. Advertising regulations differ from state to state, as do punishments, which can include warnings, the revoking of your license and civil suits.
Regulation Z of the Truth in Lending Act (TILA), a federal law that requires full disclosure of all credit terms in easily understood language, prohibits language that misleads home buyers and homeowners into risky loans. Section 129 of TILA authorizes the Federal Reserve to regulate deceptive or abusive practices in mortgage advertising. It sets specific guidelines on how to promote certain adjustable-rate mortgages, home equity lines of credit and closed-end mortgages. Ads must contain additional information about rates, monthly payments, and other loan features, and must be devoid of seven misleading practices once common in mortgage advertising.
The Federal Trade Commission and state and local governments regulate advertising so consumers aren't misled or deceived. As a marketer or advertiser, you have to follow the rules or face legal consequences. Follow the steps to learn how to do legal advertising.
