Misleading Advertising Law

While I have been critical of the FTC's new proposed Business Opportunities Rule there is much to learned by reviewing what practices the FTC seeks to explicit deem as fraudulant. One addition is section 457(5)(e) which prohbits sellers from claiming that that FTC prohibits thems from giving the buyer earnings' claims. According to the FTC, "this addresses a recurring problem identified in the rulemaking record--sellers misrepresenting that federal law or the FTC prohibits the making of earnings claims. In effect, this prohibition ensures that prospective purchasers are not misled into believing that earnings information is unavailable to them as a matter of law. Prospective purchasers can then understand that if the seller provides no earnings information, it is because none exists, or because the seller chooses not to make such information available."

Technorati Tags: ftc, earnings, prospective, matter of law, information available, business opportunities, thems, misled, deem, prohibition, explicit, federal law, addresses

Technorati Tags: ftc, technorati, earnings, prospective, matter of law, business opportunities, information available, thems, misled, deem, prohibition, explicit, addresses, law information