If you own a business, you probably already realise that there is a law against false advertising. But did you know that there’s also a law against misleading advertisements? This law allows you to file a complaint with the Federal Trade Commission (FTC) if an advertiser makes unsubstantiated claims about its products or services.
You are allowed to file a lawsuit for unfair competition and deceptive trade practices, although these cases are rarely successful.
The best way to ensure you are not violating any laws is to check out the FTC website and follow the guidelines.
What is FTC?
The Federal Trade Commission (FTC) is an independent agency within the U.S. Department of Justice responsible for promoting consumer protection and ensuring fair business practices in America.
The FTC regulates businesses engaging in advertising and marketing to protect consumers from unfair trade practices. These activities include, among others: product endorsements, testimonial endorsements, misleading statements, false representations and deceptive practices.
Any company whose products or services are advertised to consumers will need a valid certification issued by the FTC. This certification assures consumers that the company’s advertisements are truthful and do not mislead them.
To get certified, companies must undergo rigorous testing concerning the accuracy and honesty of their advertisements. Companies also agree to abide by regulations put forth by the FTC regarding their advertisements and marketing campaigns. If a company fails to uphold these rules, it could face legal action from the FTC.
How do I report a company to the FTC?
So to file an official complaint against a business, you should start by checking out the Federal Trade Commission website. There you will find information regarding how to make a consumer complaint, and you’ll also locate links to the phone number for each state’s enforcement office.
Before you contact the FTC, you might want to consult with an attorney. If any legal issues are involved, you may want to consider hiring a lawyer to help guide you through the situation.
You may also wish to seek legal advice if you plan to sue someone for damages related to fraudulence. In addition to contacting the FTC, you may have grounds to pursue civil action for these cases. However, if you choose to file suit, it is essential to hire a qualified attorney to assist you.
The FTC typically investigates complaints within six months of receiving them. Once investigated, the agency determines whether a violation occurred and, if necessary, takes the appropriate actions.
As stated above, most companies claim that they provide quality services. Consumers may decide to file a complaint if they feel that the company did not deliver what it promised.
Another reason that consumers may file a complaint because they feel that the company used deceptive practices to promote their product or service. If a business misleads customers about its product, it may face penalties under federal law.