2. Amazon

3. ADVERTISING LAW

4. LIMITS What do you think should be the limits placed on advertisers?
Should a particular audience be protected?

5. Seven Rules for Legal Advertising
Rule 1 – Be Accurate
Rule 2 – Get Permission
Rule 3 – Treat Competitors Fairly

6. Seven Rules for Legal Advertising
Rule 4 – Have Sufficient Quantiies on Hand
Rule 5 – Watch out for the Word “Free”
Rule 6 – Be Careful When You Describe Sales and Savings

7. Seven Rules for Legal Advertising
Rule 7 – Observe Limitations on Offers of Credit

8. Don't Get Green Washed Deceptive Credit Ads Deceptive Drug Ads Misleading or not?

10. Super Bowl 2014 30 second spot – 4 Million Dollars
Jaguar’s build up to the Super Bowl
Jaguar Advertisement

11. RESTRAINTS ON ADVERTISING
3 Primary restraints
1. Laws and regulation of legally established bodies
2. Control by the media
3. Self-regulation by independent organizations
by the company
codes of conduct

12. ROOT OF SELF AND GOVERNMENT REGULATION
Reform mood of late 19th and early 20th Century
Manifestations:
a. Muckraking
Sherman Antitrust act of 1890
Clayton Act of 1914
“Tend to lessen competition or to create a monopoly in any line of commerce”

13. ROOT OF SELF AND GOVERNMENT REGULATION
Printer’s Ink Model of Advertising
Federal Trade Commission act of 1914
Forces brought about by Yellow Journalism of 1890s
Rise of modern advertising and marketing

14. FTC ACT and the FEDERAL TRADE COMMISSION
Basic Power of FTC found in Section 5
a. Given task of “preventing unfair method of competition in commerce” in original Section 5.
B. “And unfair or deceptive acts of practices in commerce added in Wheeler-Lea Act of 1938.

15. FTC ACT and the FEDERAL TRADE COMMISSION
c. “Affecting commerce” added in the FTC Improvement Act of 1975
Section 12 added in 1938: defined false advertising as “unfair or deceptive act in commerce.”

16. FTC ACT and the FEDERAL TRADE COMMISSION
Wheeler-Lea Act established a caveat venditor policy
Old policy -- caveat emptor rule

17. FTC ACT and the FEDERAL TRADE COMMISSION
Organization of the FTC
The Commission has executive and rule-making powers
The staff: has executive powers.
Administrative Law Judges: Have judicial powers

18. POWERS OF FTC Publicity injections to stop ads injurious to health
Industry guidelines
Trade rule regulations
Advisory opinions
Letters of voluntary compliance
Consent orders

19. POWERS OF FTC Cease-and-desist orders
Can represent consumers in court against deceivers in the marketplace

20. WHAT CONSTITUTES DECEPTION
“likely to deceive” test
Misrepresentation of fact
Qualifications (weaseling) will not save a deception
An ad may deceive even though literally, technically true

21. WHAT CONSTITUTES DECEPTION
“Substantial test data” must support specific, scientific claims
Product claims not made on “Reasonable basis” are deceptive.
Packaging must be reasonably related to the product so as not deceive.

22. WHAT CONSTITUTES DECEPTION
Non-disclosure of material fact is deception FTC v. Colgate
Puffery is given a good deal of protection when claims are general; when claims are specific puffery is deception

23. Terms Unfairness doctrine Ad substantiation Subliminal advertising
Corrective advertising
Affirmative disclosure
Disparagement

24. QUESTIONS? Does a medium have the right to refuse advertising?
Do celebrities used in product endorsements have to use the product?

25. CONSTITUTIONALITY OF ADVERTISING REGULATION
Valentive v. Chrestensen
New York Times v. Sullivan
Colgate

26. CONSTITUTIONALITY OF ADVERTISING REGULATION
Central Hudson v. Public Service Commission
Posadas de Puerto Rico Associates v. Tourism
Eimann v. Soldier of Fortune