Consumer Protection Against False Advertising

An alumnus of the Cornell Law School, M. Keith Lipscomb currently serves as a managing member of Lipscomb, Eisenberg & Baker, PL. Working on multi-million dollar cases, he has helped numerous businesses protect their intellectual property. Specifically, Keith Lipscomb is knowledgeable in trademark litigations, internet regulations, and truth-in-advertising laws.

For consumer protection, the Federal Trade Commission established the truth-in-advertising laws, which state that all advertisements maintain honesty. Regardless of medium used, companies cannot promote products and services in a misleading way, and they are required to provide scientific evidence, as necessary. Should an advertisement be deemed fraudulent, the Federal Trade Commission has the right to file a lawsuit against the company at fault to prevent further use of the advertisement, seize assets, and obtain compensation for victims involved.

The commission primarily focuses on national advertising that affects a large number of consumers. In addition, close examination of advertisements relating to health, safety, and widespread economic injury are of the utmost importance as the commission seeks to safeguard the well-being of consumers. 

Businesses charged with fraudulent advertising may be issued a cease and desist order requiring immediate removal of ads. Failure to do so results in a penalty of $16,000 per day for each ad. To avoid penalties, a business can provide proper disclosure on future advertisements to ensure consumers are fully aware of any conditions that may affect them adversely.

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