Question

What are some of the actions that may be taken by the FTC against deceptive advertising practices?

Answer 1

One of the most critical action that FTC can take, if the allegations of the ‘deceptive advertising practices’ undertaken by the agencies are proven, could be that of ‘cease and desist’. Under such an action, an order is passed against such an advertising agency or the Company that is deceiving the consumers to cease the advertisements and refrain from doing such an act any time in future again. In addition, the steps that could be taken again such a Company could include Affirmative advertising due to which the Companies would have to first oblige the FTC that it shall comply to include certain information in its advertisements that are deemed necessary for the Public to know so that such advertisements do not misguide them. Also, action of counter-advertising could also be taken wherein the Company needs to confess to the Consumers that their previous claims were false. The cease and desist action must be exercised on such Companies in a manner that they desist to create advertisements of not only such products, malpractices of which has come in the Radar of the FTC but also that of its whole range of other products that are prone to similar false claims to the consumers. For all this, the FTC needs to file an action against such Companies at the Federal District Court so that actions are promptly taken and that the scams cease to exist completely. The assets of the Company could also be frozen and the FTC can also appeal for the compensation to the damages caused to the victims,