Question

Which of these is a TRUE statement regarding truth in advertising violation penalties?

O A cease-and-desist order from the Federal Trade Commission related to deceptive advertising becomes effective 30 days after issuance.
O The Federal Trade Commission determines the severity of the penalty based on the severity of the violation.
O The Federal Trade Commission typically imposes jail time for truth in advertising violations.
O The severity of the civil penalty for violating truth in advertising laws is based on the number of consumers affected by the deceptive ad.
O The Federal Trade Commission determines the severity of the penalty based on the severity of the violation.

Answer 1

The correct statement about truth in advertising violation penalties is that the FTC determines the penalty's severity based on the violation's severity. Advertisers are allowed some exaggeration, but claims presented as facts must be true. The FTC enforces these rules, adhering to the 'buyer beware' principle.

Step-by-step explanation:

Among the statements provided regarding truth in advertising violation penalties, the true statement is that the Federal Trade Commission (FTC) determines the severity of the penalty based on the severity of the violation.

The FTC checks factual claims about a product's performance, and while some level of exaggeration is permitted, outright false claims are not. Advertisers must be cautious since presenting a claim as a fact demands it to be true, aligning with the caveat emptor principle, which translates as "let the buyer beware."

Regarding the specific statements, a cease-and-desist order does become effective after issuance, but the exact timeline can vary. The FTC does not typically impose jail time for truth in advertising violations, as these are usually civil matters. Penalties are indeed based on the violation's severity but are not directly tied to the number of consumers affected.