Unfair and Deceptive Practices
Laws and legal information about unfair and deceptive practices
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Unfair and Deceptive Business Practices
Federal and state law prohibits businesses from engaging in activities that are "unfair" or "deceptive." The key federal law on this subject for most businesses is the Federal Trade Commission Act, enforced, of course, by the Federal Trade Commission. Similar state laws are often called "mini-FTC Acts" or "UDAP" statutes and are enforced by the states' Attorneys General or other consumer protection offices. Read more
FTC Endorsement Gudelines
FEDERAL TRADE COMMISSION16 CFR Part 255Guides Concerning the Use of Endorsements and Testimonials in Advertising* * * *§ 255.0 Purpose and definitions.(a) The Guides in this part represent administrative interpretations of laws enforced by theFederal Trade Commission for the guidance of the public in conducting its affairs in conformitywith legal requirements. Specifically, the Guides address the application of Section 5 of the FTCAct (15 U.S.C. 45) to the use of endorsements and testimonials in advertising. The Guides providethe basis for voluntary compliance with the law by advertisers and endorsers. Practicesinconsistent with these Guides may result in corrective action by the Commission under Section 5if, after investigation, the Commission has reason to believe that the practices fall within the scopeof conduct declared unlawful by the statute. Read more
Establishing and Licensing New Certification Marks
As companies increasingly try to make environmental or health claims about their products, they often seek "certification" from new organizations. Some of those organizations may have been formed for the sole purpose of providing certifications for commercial purposes. Mary Hutchings Reed of Winston & Strawn has just authored, with Carly Drake, a summary of the current state of the law on such certifications and offers tips on licensing agreements, for both licensors and licensees. Establishing and Licensing "New" Certification Marks: Suggestions for Special Contract Provisions. Read more