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Series on Understanding Business Law & Regulations
As a small business owner, you are subject to the same regulations as large corporations. Even if you’re starting out on a small level and planning to grow, you must comply with business laws and regulations from the day you open for business.

This month: Advertising Law: Truth in Advertising Product Labeling Advertising Specific Products
You’ve got a great product or service to sell, and you’re anxious to begin promoting it to potential customers. To make sure the claims you make about your offerings are truthful and to protect consumers, all businesses have to comply with advertising and marketing laws. This section will help you understand the basic rules when it comes to advertising, labeling your products, and marketing online or over the phone.

Truth in Advertising
Advertising laws are aimed at protecting consumers by requiring advertisers to be truthful about their products and to be able to substantiate their claims. All businesses must comply with advertising and marketing laws, and failure to do so could result in costly lawsuits and civil penalties. So before you start an advertising campaign, it's important you understand some basic rules. The Federal Trade Commission (FTC) is the main federal agency that enforces advertising laws and regulations. Under the Federal Trade Commission Act: • • • Advertising must be truthful and non-deceptive Advertisers must have evidence to back up their claims Advertisements cannot be unfair

Additional laws apply to ads for specialized products like consumer leases, credit, 900 telephone numbers, and products sold through mail order or telephone sales. State and local governments also regulate advertising, and enforcement is usually the responsibility of a state attorney general, a consumer protection agency or a local district attorney. The

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