an independent federal government agency that was created in 1914 under the Federal Trade Commission Act
Federal Trade Commission (FTC)
an independent federal government agency governed by five commissioners who are appointed by the President and affirmed by the Senate
Federal Communication Commission (FCC)
a division of the US Department of Health and Human Services responsible for regulating food products, cosmetics, drugs such as vaccines, and medical devices
US Food and Drug Administration (FDA)
a tort that requires a plaintiff to prove (1) the defendant intentionally made a false representation of a material fact, (2) the defendant knew the representation was false, (3) the defendant intended to either induce the plaintiff into acting or refrain from acting, and (4) the plaintiff was justified in relying on the misrepresentation
fraud
an exaggerated, puffed, or outlandish claim about a product that a normal person would believe not to be an accurate factual representation or difficult to prove as true
puffery
the rules that advertising cannot be (1) deceptive, (2) unfair, or (3) contain claims unsupported by sufficient evidence are referred to as the
truth in advertising rules
advertising that states or omits a fact that makes the advertising misleading about a material fact to the reasonable consumer
deceptive advertising
advertising that causes or is likely to cause
substantial consumer injury that cannot be avoided and is not outweighed by the benefits it produces
unfair advertising
a legal order issued by an administrative agency and has the effect of an injunctive order stating to stop engaging in certain conduct
cease-and-desist order
advertising refuting, clarifying, or correcting the content in potentially deceptive advertising
counter advertising
- false or misleading communication
- about the seller’s product or another’s product
- which is likely to cause a material influence on consumer decision-making
- resulting in injury to the plaintiff.
false advertising
less offensive than obscene material and is not allowed to be aired on television or radio broadcasts during times when a child might regularly be exposed to such programming
indecent material
language that is grossly offensive and constitutes a nuisance to the general public
profane language
Latin phrase that means “buyer beware.”
caveat emptor
if answered untruthfully by the seller, may provide evidence of a misrepresentation
disclosure statement
commonly defined as an agreement under which the buyer agrees to take the item in its present condition and agrees the seller is not responsible for making any repairs to the item
as-is clause
a claim that directly or indirectly states a food product has a certain characteristic
nutrition content claim
the process by which marketing is made directly to a consumer
direct marketing
a common form of direct marketing and involves the use of a phone or similar electronic device to make a sale of a product or service
telemarketing
the process by which sellers market to a consumer through a mobile device such as a cell phone
mobile marketing
written or oral assertions (promises) about a product or a service made by a seller
Express warranties
nonverbal or non-written assertions about a product or a service at the time they are sold
Implied warranties
the assertion by the selling merchant that a consumer product is fit for its general purpose and contains no defect
implied warranty of merchantability
someone who routinely sells goods of this nature or holds themselves out as having specific knowledge or skill related to the product
merchant
