How do government agencies investigate and pursue false advertising claims?
After determining that a complaint may have merit, the agency may demand in writing that the advertiser substantiate its claims. If the advertiser cannot provide substantiation, the agency may demand that the advertiser cease and desist from using the unsubstantiated advertising. If it is clear that the advertisement is deceptive, the agency may issue a cease and desist demand from the outset, without a demand for substantiation. Often an agency will propose that the advertiser agree to a “consent decree” in lieu of formal proceedings. The agency may require that the advertiser withdraw the advertising in question, agree not to engage in false or misleading advertising in the future, pay a fine or fee to cover the costs of investigation and issue corrective advertising.
