Final answer:
Online advertisements of consumer credit are regulated by the same principles of the Truth in Lending Act and its Regulation Z, under the enforcement of the Federal Reserve Board (the Fed). These regulations include ensuring transparency, non-discrimination, and the prevention of fraud in commercial transactions.
Step-by-step explanation:
The law that regulates online advertisements of consumer credit, much like Regulation Z (Truth in Lending) that regulates print advertisements, falls under the authority of the Federal Reserve Board (the Fed) and is directed by the same set of regulations. Online credit advertisements are expected to comply with the Truth in Lending Act, which encompasses Regulation Z, and are also subject to scrutiny under the broad principles of consumer protection laws enforced by the Fed. These include ensuring transparency in credit terms, non-discrimination in credit and lending, and the prohibition of false or misleading statements that might constitute fraud in commercial transactions. Additionally, the federal government requires disclosure of complete pricing, including all taxes and fees, for advertised services such as airline tickets to prevent deceptive practices.