The correct answers to these open questions are the following.
The government agency that regulates advertising of consumer products such as bottled water is the FDA, The Food and Drug Administration.
What is the purpose of consumer protection as it relates to truthful advertising?
The purpose is that companies really and truthfully inform American consumers over the components of the food or medicines they are about to take. It is of the utmost importance that the American people are informed and protected when they are consuming food or medicines, so they know what they are having.
What are the consequences for non-compliance with federal and/or state regulations around consumer products and services?
FDA has the power to enforce its regulations nationwide. If companies do not comply, the FDA can enforce the regulations and companies have to pay fines from 100,000 to more than 250,000 dollars.
What recommendations would you offer that complies with regulations and could still promote the product for the company?
My recommendation is that companies are honest when making advertisements to promote their products. Many times, companies lie to attract more consumers to defeat their competitors, cheating the people on some benefits that are not true.
That is not honest or ethical.
Clear communication and honesty is my best advice.