Ad Law Access https://www.kelleydrye.com/viewpoints/blogs/ad-law-access Updates on advertising law and privacy law trends, issues, and developments Mon, 01 Jul 2024 17:29:59 -0400 60 hourly 1 FTC Clarifies Standard for Clear and Conspicuous Disclosures https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-clarifies-standard-for-clear-and-conspicuous-disclosures https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-clarifies-standard-for-clear-and-conspicuous-disclosures Mon, 01 Dec 2014 15:36:47 -0500 In late September 2014, the FTC announced its “Operation Full Disclosure” initiative, during which the agency sent warning letters to more than 60 companies addressing how the companies made disclosures in their respective ads. Our blog entry about Operation Full Disclosure is available here. The warning letters generally recommended that, among other things, disclosures be in a in a font size that is easy to read and at least as large as other fonts the advertiser uses to convey the claim. That recommendation appeared to be a departure from the “flexible performance standard” for disclosures traditionally embraced by the Commission under the FTC Act.

In response to a question raised during a December 1, 2014, American Bar Association webinar devoted to what advertisers need to know about making disclosures, however, the Commission clarified that, in fact, a disclosure made in print smaller than the size of the corresponding claim could be “clear and conspicuous.” In other words, using the same size font as the claim may be one way to make a disclosure clear and conspicuous, but it is not the only way. The traditional FTC flexible performance standard still applies.

]]>
FTC Sends Warning Letters on Disclosures https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-sends-warning-letters-on-disclosures https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/ftc-sends-warning-letters-on-disclosures Thu, 25 Sep 2014 06:30:32 -0400 This week, the FTC announced that the agency had sent warning letters to more than 60 companies — including 20 of the 100 largest advertisers in the country — addressing how the companies make disclosures in ads. According to the letters, FTC staff “recently reviewed more than a thousand national magazine and television advertisements to identify advertisements that raise disclosure issues and to share [its] concerns with the companies responsible for the ads.”

The letters outline the FTC’s position on what it believes is required for a disclosure to be clear and conspicuous. Among other things, the letters state that “advertisers should use clear and unambiguous language and make the disclosures stand out. Consumers should be able to notice the disclosure easily; they should not have to look for it.” The FTC also discussed factors that advertisers should consider when evaluating disclosures, including where the disclosures are placed, the font size, and how well they contrast against the background.

In the warning letters, the staff identified problematic ads, recommended that advertisers review their ads to ensure that any necessary disclosures are truly “clear and conspicuous,” and asked them to notify the staff “of what actions you have taken or intend to take in response to this letter to ensure your company’s compliance with the FTC Act.” According to the FTC’s press release, the “response to staff’s letters has been extremely positive.”

If you received a letter from the FTC, you’ve likely already told the agency of what you plan to do ensure your disclosures comply with the law. If you didn’t receive a letter, you should nevertheless use this as an opportunity to review your own disclosure practices. The FTC is clearly focused on this issue, and these types of warning letters can often be a signal that enforcement lies ahead.

]]>