INTERNET LAW - ONLINE MARKETING RULES IN THE UNITED STATES
Online marketing should always state the truth and not mislead consumers. It must ensure the protection of businesses and consumers and preserve the integrity of the Internet as an advertising medium. Online marketing involves research and active outflow of information. Combining offline and online techniques can double profits.
In order to allow business to benefit while protecting consumers from the perils of this new arena, many advocates are encouraging the passage of an "Internet Sales Rule" to offer consumers the same protection in online purchases as they have in other distance sale situations, such as purchases made by telephone.
The Federal Trade Commission Act (FTCA) allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. A claim can be misleading if applicable information is absent or if the claim implies something that is inaccurate. Sellers are liable for claims they make about their products and services. Third parties such as advertising agencies or website designers and catalog marketers also may be liable for making or distributing deceptive representations if they contribute to the research or allocation of the advertising or know about the deceptive claims.The marketing organization is responsible for assessing the information used to validate ad claims. A consumer cannot simply rely on an advertiser’s assurance that the claims are proved. In order to protect themselves, catalog marketers should ask for material to back up claims rather than replicate what the manufacturer states about the product. Further, they should believe their intuition when a product sounds too good to be true. Disclaimers and disclosures must be clear and evident so that consumers can understand the information. Display of the product must indicate how it will perform under regular use. The marketers must refund money to dissatisfied consumers, especially if such refunds were promised. Sellers should take special care not to misrepresent a product or its performance when advertising to children.
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