Regulation and enforcement False advertising

1 regulation , enforcement

1.1 united states
1.2 united kingdom
1.3 australia
1.4 new zealand

regulation , enforcement
united states

in united states, federal government regulates advertising through federal trade commission (ftc), , additionally enables private litigation through various statutes, lanham act (trademark , unfair competition).

the goal prevention rather punishment, reflecting purpose of civil law in setting things right rather of criminal law. typical sanction order advertiser stop illegal acts, or include disclosure of additional information serves avoid chance of deception. corrective advertising may mandated, there no fines or prison time except infrequent instances when advertiser refuses stop despite being ordered so.

in 2013 , 2014, united states supreme court reviewed 2 false advertising cases: static control v. lexmark (concerning has standing sue under lanham act false advertising) , pom wonderful llc v. coca-cola co..

state governments have variety of unfair competition laws, regulate false advertising, trademarks, , related issues. many similar of ftc, , in many cases copied closely known little ftc acts.

in california, 1 such statute unfair competition law (ucl). ucl “borrows heavily section 5 of federal trade commission act” has developed own body of case law.

united kingdom

advertising in uk managed under consumer protection unfair trading regulations 2008 (cpr), successor trade descriptions act 1968. designed implement unfair commercial practices directive, part of common set of european minimum standards consumer protection , legally bind advertisers in england, scotland, wales , parts of ireland. these regulations focus on business consumer interactions. these modelled table used assessing unfairness, evaluations being made against 4 tests expressed in regulations indicate deceptive advertising:

contrary requirements of professional diligence
false or deceptive practice in relation specific list of key factors
omission of material information (unclear or untimely information)
aggressive practice harassment, coercion or undue influence

these factors of deceptive advertising critically analysed may crucially impair consumer s ability make informed decision, thereby limiting freedom of choice.

this system resembles american practice reflected ftc in terms of disallowing false , deceptive messaging, prohibition of unfair , unethical commercial practices , omitting important information, differs in monitoring aggressive sales practices (regulation seven) included high-pressure sales practices go beyond persuasion. harassment , coercion not defined rather interpreted undue physical , psychological pressure (in advertising).

even if proven cases of false advertising not inevitably result in civil or criminal repercussions: office of fair trading states in instance of false advertising, companies not faced civil , criminal repercussions, based on seriousness of infringement , each case analysed individually, allowing standards authority promote compliance regards enforcement policies, priorities , available resources. area of departure american practice relates general prohibition on use of competitors logotypes, trademarks or similar copy used in competitor s own advertising another, particularly when making comparison.

under cpr legislation, there different standards authorities each country:

in england , wales, standards offences handled local authority trading standards services (tss)
in northern ireland department of enterprise, trade , investment
in scotland, offences evaluated by. , potentially prosecuted through, crown office , procurator fiscal service on behalf of lord advocate.

australia

in australia, australian competition , consumer commission known accc, responsible ensuring businesses , consumers act in accordance australian competition & consumer act 2010, as, fair trade , consumer protection laws (accc, 2016).

each state , territory have own consumer protection agency or consumer affairs agency (accc 2016).

act - office of fair trading (oft)
nsw - fair trading
office of fair trading - queensland
sa - office of consumer , business services (cbs)
tasmanian - consumer affairs & fair trading
consumer affairs - victoria (cav)
wa - department of commerce

the accc designed assist both consumers, businesses, industries , infrastructure within country. accc assists consumer making available rights, regulations, obligations , procedures; refund , return, complaints, faulty products , guarantees of products , services. assist businesses , industries developing clear laws , guidelines in relation unfair practices , misleading or deceptive conduct.

there many similarities in laws , regulation between australian accc, new zealand fta, american fct , united kingdom cpr. structure of these policies support fair trade , competition alongside offering consumers selling, in order reduce deceptive , false practices. however, not limited these countries, countries have agreements international consumer protection , enforcement network or icpen.

new zealand

in new zealand, fair trading act 1986 aims promote fair competition , trading in country. act prohibits conduct in trade, provides disclosure of information available consumer relating supply of goods , services , promotes product safety. although act not require businesses provide information consumers in every circumstances, businesses obliged ensure information provide accurate, , important information not kept consumers.

a range of selling methods intend mislead consumer illegal under fair trading act: act applies activities whether or not parties in trade – such employment advertising, pyramid selling, , supply of products covered product safety , consumer information standards.

both consumers , businesses alike can rely on , take own legal action under act. consumers may contact trader , utilize rights have been stated in act make headway trader. if issues not resolved, consumer or else can take actions under act. commerce commission empowered take enforcement action , when allegations sufficiently serious meet enforcement criteria.

additionally, there 5 consumer information standards:

country of origin (clothing , footwear) labeling – regulations 1992
fibre content labeling - regulations 2000
used motor vehicles - regulations 2008
water efficiency - regulations 2010




^ 15 u.s.c. § 45.
^ johar, gita, intended , unintended effects of corrective advertising on beliefs , evaluations: exploratory analysis , journal of consumer psychology, 1996, 5(3), 209-230.
^ johar, gita venkataramani , carolyn j. simmons, “the use of concurrent disclosures correct invalid inferences,” journal of consumer research, 2000, 26(4), 307-322.
^ richards, id; policy statement on deception, 103 ftc decisions 110 (1984), appendix cliffdale associates; letter ftc chairman james c. miller rep. john d. dingell (october 14, 1983). history of changing deception deceptiveness standard, see preston, ivan l., great american blow-up: puffery in advertising , selling, university of wisconsin press, revised ed. (1996), @ ch. 8.
^ see e.g. n.y. isc. law §§ 2401-2409.
^ california civil code - civ § 1770 - findlaw . findlaw. 
^ california antitrust & unfair competition law (third), volume 2: unfair competition (state bar of california, 2003 daniel mogin & danielle s. fitzpatrick, eds.) @ pg. 9.
^ cite error: named reference ot2008 invoked never defined (see page).
^ cite error: named reference eighmey invoked never defined (see page).
^ advertising , selling guide . australian competition & consumer commission. october 24, 2016. 
^ fair trading . acc government access canberra. october 25, 2016. 
^ fair trading nsw . nsw government fair trading. october 25, 2016. 
^ fair trading . queensland government. october 25, 2016. 
^ consumer , business services . consumer , business services south australia. october 25, 2016. 
^ consumer affairs , fair trading . tasmanian government. october 25, 2016. 
^ consumer affairs victoria . consumer affairs victoria. october 25, 2016. 
^ department of commerce . government of western australia. october 25, 2016. 
^ international consumer protection , enforcement network . icpen. october 24, 2016. 
^ fair trading act ... | commerce commission . www.comcom.govt.nz. retrieved 2016-04-01. 
^ | commerce commission . www.comcom.govt.nz. retrieved 2016-04-01. 
^ fair trading act . consumer nz. retrieved 2016-04-01. 
^ cite error: named reference :5 invoked never defined (see page).