Question

A certain federal law prohibits unfair or deceptive practices, such as making false promises about a product, sending billing for unsolicited merchandise, using high-pressure door-to-door sales methods, and bait-and-switch techniques. What law is this?

Answer 1

The Federal Trade Commission (FTC) enforces the law that prohibits unfair or deceptive practices in advertising, including false promises and bait-and-switch tactics. It ensures factual claims are true and requires disclosures where necessary, while allowing for some exaggeration and ambiguity in ads.

Step-by-step explanation:

The federal law that prohibits unfair or deceptive practices, such as making false promises about a product, sending billing for unsolicited merchandise, using high-pressure door-to-door sales methods, and bait-and-switch techniques, is enforced by the Federal Trade Commission (FTC). This law is part of a larger suite of antitrust laws that prevent unfair competition and price fixing, as well as other deceptive practices. The FTC's role is to ensure that advertisers provide truthful information and do not engage in fraud or false advertising. Exaggerated claims are often allowed if they are not factually untrue, and ambiguous language or imagery can be tolerated to an extent. However, businesses are held accountable for untrue facts which are strictly not permitted. Additionally, there are requirements for certain disclosures, such as nutritional information on food and beverage containers, and warning labels on tobacco products.