The
Federal Trade Commission (FTC) oversees federal advertising laws, while state
consumer-protection laws may also allow consumers to sue advertisers. In
general, if an ad contains lies or is misleading or deceptive, it is illegal.
If an ad includes a product endorsement from someone who has not approved use
of his or her name in the ads, that is also illegal.
Frequently,
advertising-related lawsuits concern false health claims for products,
deceptive pricing, or "bait" ads that offer a cheap price on an item
that is only available in very limited quantities.
A company may also sue its competitors over
advertising that disparaged the company unfairly or put it at a competitive
disadvantage.
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