False Advertising: What Is It, and How Does Our Agency Avoid It?
True or false? Anyone involved in the advertising process can be held liable under most regulations and statutes that govern false advertising. Oh. so. true. The advertiser, the Agency, and anyone else involved who knowingly, or sometimes negligently, fails to follow the rules, is on the hook. In addition to traditional and digital advertising, when you think about the current state of influencer marketing, and the tangled web of risks around each brand and #ad campaign, it’s easier to visualize the vulnerability of agencies when it comes to implementing these tactics. False claims and advertising can lead to financial, legal, and brand loyalty and reputation issues. It can also completely disrupt your Agency’s relationship with a valued client. But what exactly are the rules around false advertising and where do they come into play? Understanding False Advertising False advertising involves the stating of untrue claims about the performance, reliability, functions and features of whatever product or service is being promoted. This not only applies to the way a product works, but also includes its origin and the way it is manufactured. It isn’t just outright lying in advertising that gets you in trouble with regulators, but also making claims or omissions that could mislead regulators, competitors or consumers. Actual False Claims: Stating information that is clearly false and incorrect. Misleading Claims: Messages that allude to or imply incorrect information that can mislead the buying audience. Unsubstantiated Claims: The presentation of information that can’t be verified, including that of competition. Four Ways Your Agency Can Get Into Trouble 1. No substantiation of claims Do not make any claims about the product or service that you or your client cannot verify. Sources such as product research, consumer [...]