Deceptive advertising is not a new cause of action. However, the Internet has increased the number of means through which deceptive advertising can be perpetrated. In particular, fake blog-style websites, also known as flogs, are becoming common on the Internet. Often containing fabricated testimonials or tantalizing but unsubstantiated claims, these flogs are one of the most prolific ways third parties advertise and earn revenue from their products or services. Internet lawyers should take note of this growing practice and be in a position to advise both advertisers and consumers on the matter.
For one thing, Internet lawyers should inform advertising clients that scourges may expose them to civil and/or criminal liability under federal advertising laws and FTC Rules, including the recently enacted Part 255 Guidelines. While truthful advertising, legitimate testimonials, and proper disclosure of material connections and other information, for example, can help reduce the likelihood of false advertising liability, understanding the intricacies of the law and the limits is now more important than ever. . If not, advertisers are likely to be subject to increased lawsuits for flogging, misleading and false internet ads.
On the other hand, it is also important that consumers who may have been misled into purchasing goods or services in light of these scourges or other false advertisements understand that a remedy may be available. The reality is that consumers, when presented with ads, more often than not click on them and consider them when making a purchase decision. The resulting damage may warrant a lawsuit. Similarly, the FTC constantly seeks to protect consumers from harmful ads that could harm the public.
Ultimately, inappropriate endorsements, celebrity or otherwise, unsubstantiated product claims, and other false statements can lead to significant legal and financial exposure. Businesses wishing to advertise online should consult with an Internet attorney who can provide information on the use of testimonials, the need for disclosure, and practices to avoid to mitigate the likelihood of a false advertising lawsuit or investigation by from the FTC. Sure, an advertisement can generate significant revenue, however it must be presented in a legal and proper manner to ensure that revenue derived from it is not ultimately awarded as damages in a lawsuit. So, as tempting as spanking can be for both advertisers and consumers, truth in advertising remains paramount.
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