What is FTC?
The Federal Trade Commission (FTC) promotes competition in the United States marketplace and protects consumers. In e-commerce and online marketing, the FTC provides rules and guidance around online advertising, which it refers to as the ‚ rules of the road. It enforces the CAN-SPAM Act to ensure email marketing isn’t misleading or harassing.
Example
Suppose a company advertises a weight-loss supplement, claiming it can help consumers lose 20 pounds in a week without diet or exercise. However, scientific evidence shows rapid weight loss is unrealistic and potentially harmful. If the company fails to disclose the risks and deceives consumers with false claims, the FTC may investigate and take enforcement action against the company for deceptive advertising practices. This could result in penalties, fines, or corrective actions to ensure false or exaggerated claims do not mislead consumers.