Who establishes and enforces advertising laws?
A.: The Federal Trade Commission (FTC) has broad authority to prohibit unfair or deceptive acts or practices. Under this mandate, the FTC has issued regulations barring false and misleading advertisements. Only the FTC has the authority to enforce its regulations. However, the Federal Trademark Act of 1946, commonly known as the Lanham Act, protects private parties, such as consumers or competitors, against unfair competition and false advertising. In addition, most states have laws against unfair trade practices and false advertising. Q.: What does it mean for an advertisement to be unfair or deceptive? A.: Generally, an advertisement is deceptive if it contains a misrepresentation or omission that is likely to mislead reasonable consumers. Even if it is true, an advertisement may be considered deceptive if it is likely to mislead or cause injury, assuming the likelihood it will mislead or cause injury outweighs benefits to consumers or competitors. Q.: Must advertisers provide inform