Posted: January 18th, 2023

Online advertising – working within the framework and guidelines of Advertising Law

Online advertising – working within the framework and guidelines of Advertising Law
Online advertising is a rapidly growing industry, with billions of dollars spent on advertising on the internet every year. However, with this growth comes the need to ensure that online advertising is conducted within the framework and guidelines of advertising law. This essay will discuss the key principles of advertising law as they pertain to online advertising, and provide examples and analysis to illustrate these principles in action.
One main principles of advertising law is that advertisements must be truthful and not misleading. This applies to both express and implied claims made in an advertisement. For example, an advertisement for a weight loss supplement that claims “lose 10 pounds in one week” without any qualifications or disclosures about typical results would likely be considered misleading. In contrast, an advertisement that states “results may vary” and includes a disclaimer about typical results would be considered truthful.
Another key principle of advertising law is that advertisements must be substantiated. This means that advertisers must have a reasonable basis for any express or implied claims made in an advertisement. For example, an advertisement for a skincare product that claims “reduces wrinkles by 50%” must have scientific evidence to support that claim. In contrast, an advertisement that states “our product is the best on the market” would not be considered substantiated, as this is a subjective claim.
Advertising law also requires that advertisements be clearly and prominently labeled as such. On the internet, this often means including a disclaimer such as “Advertisement” or “Sponsored” content. This is important to ensure that consumers are able to distinguish between advertisements and editorial content.
In addition to these general principles, there are also specific laws and regulations that apply to certain types of advertising. For example, the Federal Trade Commission (FTC) has guidelines for advertising directed at children, which prohibit advertisements from being unfair or deceptive. The FTC also has guidelines for advertising on social media, which require that any material connections between the advertiser and the influencer be clearly disclosed.
Online advertising is a rapidly growing industry that must operate within the framework and guidelines of advertising law. Key principles of advertising law include truthfulness and non-misleading, substantiation, and clear and prominent labeling of advertisements. There are also specific laws and regulations that apply to certain types of online advertising, such as advertising directed at children and advertising on social media. By understanding and adhering to these principles and regulations, advertisers can ensure that their online advertising is both effective and legal.

Works Cited:
Federal Trade Commission, “Guides Concerning the Use of Endorsements and Testimonials in Advertising” (16 CFR Part 255), https://www.ftc.gov/site-information/policy-guides/guides-use-endorsements-testimonials-advertising
Federal Trade Commission, “Dot Com Disclosures: How to Make Effective Disclosures in Digital Advertising” (FTC Staff Report), https://www.ftc.gov/reports/dot-com-disclosures-how-make-effective-disclosures-digital-advertising
Federal Trade Commission, “Online Advertising: A Guide for Business” (FTC Business Center), https://www.ftc.gov/tips-advice/business-center/guidance/online-advertising-guide-business

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