Advertising & Marketing Regulations

Why Marketing Compliance Matters

Creative marketing drives sales, but in the U.S., advertising is heavily regulated. The Federal Trade Commission (FTC)enforces strict rules against deceptive or misleading practices — and penalties can be severe, even for small businesses.

Truth-in-Advertising: FTC’s Core Rule

  • Claims must be truthful and not misleading. If you say a product “cures acne,” you must have proof.
  • Claims must be substantiated. Businesses must hold evidence before making health, environmental, or performance claims.
  • Comparisons must be fair. You can’t misrepresent competitors’ products to promote your own.

Example: Several supplement companies have faced multimillion-dollar fines for “miracle cure” claims without medical evidence.

Influencer & Social Media Rules

If you work with influencers or post on social platforms:

  • Influencers must clearly disclose sponsored content using “#ad” or “#sponsored.”
  • Disclosures must be clear and conspicuous — no hiding it in hashtags or links.
  • Businesses are responsible for ensuring influencers comply.

Email Marketing & CAN-SPAM Compliance

The CAN-SPAM Act sets rules for marketing emails:

  • Don’t use deceptive subject lines or headers.
  • Include your business’s physical address.
  • Provide a clear, working unsubscribe option.
  • Honor opt-out requests promptly.

Violations can cost up to $46,000 per email in fines.

Avoiding Dark Patterns

The FTC increasingly targets manipulative design tactics such as:

  • Hiding unsubscribe buttons.
  • Auto-adding products to carts.
  • Fake scarcity messages (“Only 1 left!” when stock is full).

Key Takeaways

  • Honesty and transparency are legal requirements in U.S. marketing.
  • Influencer partnerships must include proper disclosures.
  • CAN-SPAM compliance is essential for email marketing.

Action Step: Audit your marketing campaigns (ads, emails, influencer posts). Ask: Would the FTC consider this clear, honest, and not misleading?

If you want to read more about advertising & marketing regulations, please see Recommended Books.

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