1 year, 3 months ago
via advertising-answers.com
What penalties can be imposed against a company that runs a false or deceptive ad?
What is the minimum fine that can be imposed to companies that run deceptive ads? Would the company be required to refund costumers who bought their products?
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The penalty of deceptive advertising depends on the kind of violation committed. Three main acts are considered under this type of advertising: 1) failure to disclose 2) flawed and insignificant research, and 3) product disparagement as outlined in the Lanham Act of 1946.
According to the Federal Trade Commission Act, violators may suffer from 1) cease and desist orders allowing the law to stop the company from running or engaging in the deceptive ad with a fine of $16,000 per day per ad in case future violation occurs. Also, 2) civil penalties, consumer redress and monetary remedies are imposed by the law allowing the company to give refund to the consumers who purchased the products. 3) Corrective advertising, disclosures, and other informational remedies are acted upon violators (for instance, by notifying purchasers of the deceptive ads, correcting existing ads, and so on).
For more details, please visit http://business.ftc.gov/documents/bus35-advertising-faqs-guide-small-business or http://legal-dictionary.thefreedictionary.com/False+Advertising.
According to the Federal Trade Commission Act, violators may suffer from 1) cease and desist orders allowing the law to stop the company from running or engaging in the deceptive ad with a fine of $16,000 per day per ad in case future violation occurs. Also, 2) civil penalties, consumer redress and monetary remedies are imposed by the law allowing the company to give refund to the consumers who purchased the products. 3) Corrective advertising, disclosures, and other informational remedies are acted upon violators (for instance, by notifying purchasers of the deceptive ads, correcting existing ads, and so on).
For more details, please visit http://business.ftc.gov/documents/bus35-advertising-faqs-guide-small-business or http://legal-dictionary.thefreedictionary.com/False+Advertising.
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