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False advertisement is not a new cause of action. However, the Internet has increased the number of mediums through which false advertising can be promoted. In particular, fake blog-style websites, also known as phlogs, are becoming more common on the Internet. These whips, which often contain manufactured testimonials or enticing yet unsubstantiated claims, are one of the most prolific methods by which third parties are advertising their products or services and deriving revenue from them. Internet lawyers must take note of this growing practice and be in a position to advise both advertisers and consumers alike.
On the one hand, Internet lawyers should advise advertiser clients that whipping may subject them to both civil and/or criminal liability under federal advertising laws and FTC regulations, including the recently enacted Part 255 guidelines. While truthful advertising, valid testimonials, and proper disclosure of material connections and other information can help reduce the likelihood of liability for, for example, false advertising, understanding the intricacies of the law as well as the limitations is now more important than ever. is far more important. Otherwise, it is very likely that advertisers may face increased lawsuits as a result of whiplashing, misleading ads and false advertising on the Internet.
On the other hand, it is also important that consumers who have been induced to purchase goods or services in light of these codes or other false advertisements understand that they may have a remedy available. The reality is that consumers, when presented with advertisements, more often than not click on them and consider them when making a purchasing decision. The resulting damages may warrant a lawsuit. Likewise, the FTC continues to try to protect consumers from bad advertising that could harm the public.
Ultimately, improper endorsements, whether from a celebrity or otherwise, unsubstantiated product claims, and other untrue statements can lead to significant legal and financial exposure. Companies wishing to advertise on the Internet should consult with an Internet attorney who can provide information on the use of testimonials, disclosure requirements, and practices to avoid to reduce the likelihood of a false advertising lawsuit or investigation by the FTC . An advertisement can undoubtedly lead to significant revenue, however, it must be presented in a lawful and fair manner to ensure that whatever revenue is obtained is not ultimately awarded as damages in a lawsuit. So, while advertisers and consumers alike may whine, truth in advertising is paramount.
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