Advertising and marketing on the internet focusing internationally:

Using FTC guide lines
The Internet is connecting advertisers and marketers to customers from Boston to Bali with text, interactive graphics, video and audio. If you’re thinking about advertising on the Internet, remember that many of the same rules that apply to other forms of advertising apply to electronic marketing. These rules and guidelines protect businesses and consumers. And help maintain the credibility of the Internet as an advertising medium. The Federal Trade Commission (FTC) has prepared this guide to give you an overview of some of the laws it enforces.

The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. In interpreting Section 5 of the Act, the Commission has determined that a representation, omission or practice is deceptive if it is likely to:
-à mislead consumers and consumers. Behavior or decisions about the product or service. In addition, an act or practice is unfair if the injury it causes, or is likely to cause, is:
--->substantial
--à Not outweighed by other benefits and
---->not reasonably avoidable.

The FTC Act prohibits unfair or deceptive advertising in any medium.
That is, advertising must tell the truth and not mislead consumers.
A claim can be misleading if relevant information is left out or if the claim implies something that’s not true. For example, a lease advertisement for an automobile that promotes .$0 Down. May be misleading if significant and undisclosed charges are due at lease signing.

In addition, claims must be substantiated, especially when they concern health, safety, or performance. The type of evidence may depend on the product, the claims, and what experts believe necessary. If your ad specifies a certain level of support for a claim. .tests show X. You must have at least that level of support.
Sellers are responsible for claims they make about their products and services. Third parties. Such as advertising agencies or website designers and catalog marketers. Also may be liable for making or disseminating deceptive representations if they participate in the preparation or distribution of the advertising, or know about the deceptive claims.
Advertising agencies or website designers are responsible for reviewing the
Information used to substantiate ad claims. They may not simply rely on an
Advertiser’s assurance that the claims are substantiated. In determining whether an ad agency should be held liable, the FTC looks at the extent of the agency’s participation in the preparation of the challenged ad, and whether the agency knew or should have known that the ad included false or deceptive claims.

To protect themselves, catalog marketers should ask for material to back up claims rather than repeat what the manufacturer says about the product. If the manufacturer doesn’t come forward with proof or turns over proof that looks questionable, the catalog marketer should see a yellow .caution light. and proceed appropriately, especially when it comes to extravagant performance claims, health or weight loss promises, or earnings guarantees. In writing ad copy, catalogers should stick to claims that can be supported. Most important, catalog marketers should trust their instincts when a product sounds too good to be true.


Protect consumer policies online:
The Internet provides unprecedented opportunities for the collection and sharing of information from and about consumers. But studies show that consumers have very strong concerns about the security and confidentiality of their personal information in the online marketplace. Many consumers also report being wary of engaging in online commerce, in part because they fear that their personal information can be misused. These consumer concerns present an opportunity for you to build on consumer trust by implementing effective voluntary industry-wide practices to protect consumers. Information privacy. The FTC has held a number of workshops for industry, consumer groups and privacy advocates to explore industry guidelines to protect consumers.

Telemarketing:
Advertisements promoting credit repair, promising loans for a fee in advance, or touting investment opportunities may trigger application of the FTC.s Telemarketing Sales Rule if the ad allows consumers to order goods or services by telephone. In general, this Rule does not apply to general media advertisements. If you’re advertising credit repair, advance fee loans, or investment opportunities, or offering to recover money paid in previous telemarketing transactions, however, the Rule likely applies to you. Among other things, the Rule requires that certain disclosures be made before a customer pays for the goods or services. The Rule also prohibits material misrepresentations.

Testimonials and Endorsements:
Testimonials and endorsements must reflect the typical experiences of consumers, unless the ad clearly and conspicuously states otherwise. A statement that not all consumers will get the same results is not enough to qualify a claim. Testimonials and endorsements can’t be used to make a
Claim that the advertiser itself cannot substantiate. Connections between an endorser and the company that is unclear or unexpected to a customer
Also must be disclosed, whether they have to do with a financial arrangement for a favorable endorsement, a position with the company, or stock ownership. Expert endorsements must be based on appropriate tests or evaluations performed by people that have mastered the subject matter.

For more information please refer FCT