Newsletter
FTC MAKES RULES FOR TES-TIMONIAL ADVERTISING
Noting an increasing trend for companies to use advertisements featuring endorsements by well-known public figures to promote their products or services, the Fair Trade Commission (FTC) has warned that if such advertisements are misleading and adversely affect consumers' in-terests, this may incur legal liability to those re-sponsible, including criminal, civil, and admin-istrative liabilities. In order to curb misleading advertising, the FTC on April 14, 2005 past the draft Rules for Testimonial Advertising. The FTC will invite relevant stakeholders such as government agencies, suppliers, advertising en-terprises, media enterprises, consumer organiza-tions, academics, experts, and legal specialists, to discuss the draft rules at a public hearing.
We will keep our readers informed of further developments regarding the draft rules.