Advertising Overview

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.