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Overview
Although the number of companies
advertising online—and the number of consumers
shopping online—are soaring, fraud and deception may dampen
consumer confidence in the e-marketplace. But cyberspace is not
without boundaries, and fraud and deception are unlawful no
matter what the medium. The FTC has enforced and will continue
enforcing its consumer protection laws online to ensure that
products and services are described truthfully in online ads and
that consumers get what they pay for. These activities benefit
consumers as well as sellers, who expect and deserve a fair
marketplace.
Many of the general principles of
advertising law apply to Internet ads, but new issues arise
almost as fast as technology develops. This booklet describes the
information businesses should consider as they develop online ads
to ensure that they comply with the law. Briefly,
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The same
consumer protection laws that apply to commercial
activities in other media apply online. The FTC Act’s
prohibition on "unfair or deceptive acts or
practices" encompasses Internet advertising,
marketing and sales. In addition, many Commission rules
and guides are not limited to any particular medium used
to disseminate claims or advertising, and therefore,
apply to online activities. |
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Disclosures
that are required to prevent an ad from being misleading,
to ensure that consumers receive material information
about the terms of a transaction or to further public
policy goals, must be clear and conspicuous. In
evaluating whether disclosures are likely to be clear and
conspicuous in online ads, advertisers should consider
the placement of the disclosure in an ad and its
proximity to the relevant claim. Additional
considerations include: the prominence of the
disclosure; whether items in other parts of the ad distract
attention from the disclosure; whether the ad is so
lengthy that the disclosure needs to be repeated;
whether disclosures in audio messages are presented in an
adequate volume and cadence and visual
disclosures appear for a sufficient duration;
and, whether the language of the disclosure is understandable
to the intended audience. |
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To make a disclosure clear and conspicuous,
advertisers should:
- Place disclosures
near, and when possible, on the same screen as
the triggering claim.
- Use text or visual
cues to encourage consumers to scroll down a Web
page when it is necessary to view a disclosure.
- When using hyperlinks
to lead to disclosures,
- make the link
obvious;
- label the
hyperlink appropriately to convey the
importance, nature and relevance of the
information it leads to;
- use hyperlink
styles consistently so that consumers
know when a link is available;
- place the
hyperlink near relevant information and
make it noticeable;
- take
consumers directly to the disclosure on
the click-through page;
- assess the
effectiveness of the hyperlink by
monitoring click-through rates and make
changes accordingly.
- Recognize and respond
to any technological limitations or unique
characteristics of high tech methods of making
disclosures, such as frames or pop-ups.
- Display disclosures
prior to purchase, but recognize that placement
limited only to the order page may not always
work.
- Creatively
incorporate disclosures in banner ads or disclose
them clearly and conspicuously on the page the
banner ad links to.
- Prominently display
disclosures so they are noticeable to consumers,
and evaluate the size, color and graphic
treatment of the disclosure in relation to other
parts of the Web page.
- Review the entire ad
to ensure that other elements—text,
graphics, hyperlinks or sound—do not
distract consumers’ attention from the
disclosure.
- Repeat disclosures,
as needed, on lengthy Web sites and in connection
with repeated claims.
- Use audio disclosures
when making audio claims, and present them in a
volume and cadence so that consumers can hear and
understand them.
- Display visual
disclosures for a duration sufficient for
consumers to notice, read and understand them.
- Use clear language
and syntax so that consumers understand the
disclosures.
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Commission
rules and guides that use specific terms—"written,"
"writing," "printed" or "direct
mail"—are adaptable to new technologies.
- Rules and guides that
apply to written ads or printed materials also
apply to visual text displayed on the Internet.
- If a seller uses
email to comply with Commission rule or guide
notice requirements, the seller should ensure
that consumers understand that they will receive
such information by email and provide it in a
form that consumers can retain.
- "Direct mail"
solicitations include email. If an email invites
consumers to call the sender to purchase goods or
services, that telephone call and subsequent sale
must comply with the Telemarketing Sales Rule
requirements.
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