November 14, 2024

Advertising Law News and Analysis

2 min

Listen to Episodes 6 and 7 of Venable's Ad Law Tool Kit Show Podcast – "Made in USA Claims" and "Marketing to Children"

Episode 6: Many customers like to "buy American" and are willing to pay more to do so. However, if you want to call out your product's homegrown attributes, you should know that the Federal Trade Commission (FTC), as well as some states, including California, have created very specific guidance and laws on what it means for a good to be of domestic origin.

Episode 7: When marketing to children under 13, there are heightened requirements that go beyond standard truth in advertising practices. The basic idea behind these requirements is that children have a difficult time understanding that they are being given a sales pitch and distinguishing between reality and fantasy.

Made in USA Claims: An Excerpt from the Advertising Law Tool Kit

Many customers like to "buy American" and perhaps are willing to pay more to do so. However, if you want to call out the red, white, and blue attributes of your product, you should know that the FTC, as well as some states such as California, have created very specific guidance and laws on what it means for a good to be of domestic origin. Under FTC guidance, final assembly must take place in the United States, and "all or virtually all" of the good must be attributable to U.S. sources. The FTC also considers a claim of Manufactured in the USA or Crafted in the USA to be the same as a Made in USA claim.

Foul! SEC Faults Investment Adviser for Inadequate Disclosures on Professional Athlete Endorsements

The Federal Trade Commission (FTC) isn't the only regulator in town when it comes to endorsements and testimonials. The Securities and Exchange Commission (SEC) regulates investment adviser marketing under its "Marketing Rule." The rule states that an "advertisement may not include any testimonial or endorsement, and an adviser may not provide compensation, directly or indirectly, for a testimonial or endorsement" unless accompanied by clear and prominent disclosures.

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