Final answer:
The Federal Trade Commission considers any ad or business practice that causes injury, misleads consumers, makes health claims without evidence, or has difficult-to-evaluate claims to be unfair.
Step-by-step explanation:
The correct answer is option 1: Any ad or business practice that causes or is likely to cause injury, any ad that is likely to mislead consumers acting reasonably under the circumstances, any ad that makes a health claim, and any ad with a claim that's difficult to evaluate.
The Federal Trade Commission (FTC) considers an ad to be unfair if it can cause harm to consumers, mislead them, or make health claims that are not supported by evidence. Additionally, ads with claims that are difficult to evaluate, such as subjective statements about a product's effectiveness, may also be deemed unfair by the FTC.
For example, if an ad for a weight loss product claims that it can help you lose 10 pounds in a week without any scientific evidence to support the claim, the FTC may consider it to be an unfair ad.
The correct answer is option "any ad that is likely to mislead consumers acting reasonably under the circumstances." The Federal Trade Commission (FTC) considers an ad to be unfair if it is likely to mislead consumers who are acting reasonably in the given circumstances.
It's important for advertisements to have truthful factual claims, especially about a product's performance. While certain levels of exaggeration and ambiguity are permitted, as they fall under puffery, presenting untrue facts is not allowed.
Advertisers can capitalize on the general appeal of a product, but they must be careful not to make false claims as facts. The principle of 'Caveat emptor', meaning 'let the buyer beware,' reflects the responsibility on consumers to be vigilant with advertisements.