Final answer:
Agents, especially public officials, must prove 'actual malice' in cases of misrepresentation. The FTC regulates commercial speech, but consumers should remember 'caveat emptor.'
Step-by-step explanation:
An agent held to a higher standard concerning negligent misrepresentation of material facts, especially in the context of public officials or figures, must demonstrate that any defamatory falsehood was made with actual malice. This means showing that a statement was made either knowing it was false or with reckless disregard for its truth.
The Federal Trade Commission (FTC) also comes into play in ensuring that commercial speech, like advertising, does not contain untrue facts. Language that is exaggerated or ambiguous, but not false, may be permissible, but the idea of caveat emptor reminds consumers to remain vigilant.
Aside from advertising, when it comes to media publication concerning individuals, negligence in fact-checking can render a publisher liable for damages, as seen in the lawsuit involving Katie Holmes and Star magazine.