FTC's policies on deceptive pricing, use of the word free, or use of endorsements and testimonials? Deceptive marketing as defined by the FTC entails having false information to advertise or market your product to the consumers. The main aim is to mislead the consumers to purchase your item and gain at their expenses. The use of the word ‘free’ in most cases does not mean that the customer will acquire that item for free but rather, it is a conditional statement that forces the customer to purchase to benefit from the offer ("Complying with the Telemarketing Sales Rule," 2018). The endorsement is critical in the provision of truth about the nature of the product and its performance. The law emphasizes the importance of the endorser to reflect on the basic truth-in-advertising to avoid misleading the purchaser. There must be a close relationship between the endorser and the marketer as this will influence consumer’s evaluation of the endorsement.
Substantiating product claims such as "tests prove" or "studies show".
The commission emphasizes the need of the advertiser to have reasonable basis requirement on substantiation. It is a legal requirement that the support provided from the ads such as ‘test prove’ or ‘doctors recommend’ should not be in vain but instead be true. Such information usually tempts the purchaser to buy such products with the aim of getting the best out of the product (Washburn 1981). The information is considered material, and the advertiser will be held liable should such information be false.
Rules on unsolicited telephone calls and telephone slamming before telemarketing your product.
The unsolicited call is a call by the consumer that is not placed in the solicitation by the seller. In cases where unsolicited calls are recorded, the consumer is not covered, and the seller is not liable as the consumer initiated the call without inducement from the telemarketer ("Federal Trade Commission," 2018). The only exemption is when the call is a response to a prerecorded call. Telephone slamming is when the subscriber’s telephone service is altered without their consent illegally.
References
Complying with the Telemarketing Sales Rule. (2018, March 1). Retrieved from https://www.ftc.gov/tips-advice/business-center/guidance/complying-telemarketing-sales-rule#unsolicitedcalls
Federal Trade Commission. (2018, June 27). Retrieved from https://www.ftc.gov/
Washburn, W. F. (1981). FTC Regulation of Endorsements in Advertising: In the Consumer's Behalf? Pepperdine Law Review, 8(3), 3.
