What Small Business Owners Need to Know About the FTC’s Online Advertising Rules

The beauty of online advertising is that businesses can reach consumers at any time of the day. This is made especially more convenient with the advent of mobile technology allowing consumers to complete their purchase anytime and anywhere.

In 2017, retail e-commerce sales worldwide amounted to 2.3 trillion US dollars and e-retail revenues are projected to grow to 4.88 trillion US dollars in 2021.

However, just because there are no time or location constraints for online shopping doesn’t mean that advertisers can get away with anything. In fact, the Federal Trade Commission (FTC) strictly enforces deceptive advertising practices online to protect consumers. These laws are also in place to protect the sellers of any items, as they will not have to fear that their competitors are deceptively advertising to the same customer base.

Here is an overview of FTC rules and regulations regarding online advertising.

Advertising Laws Apply Online and Offline. No matter where you advertise, you must not engage in what the FTC states as “unfair or deceptive acts or practices” when advertising your product or service. At National Business Helpers, we are always examining our online and offline advertising to ensure compliance with FTC rules and regulations. We are very proud of our A+ rating with the Better Business Bureau for our proven record of trustworthiness, ethics, and commitment to outstanding client service.

Include Any Limitations. If an offer is only available for a limited time, that information must be clearly stated in the ad. Qualifying information must also be included, for example, “Limit 2” items under the sale price.

Be Obvious When Disclosing Information. You can hide a disclosure in 2 pt type. Be sure the disclosure is placed within the ad in a way that is clear to the reader, and even make sure that the disclosure is as close to the claim you’re making as possible. Here’s a rundown of how to make a disclosure clear:

• Consider all ways the consumer is receiving this ad online. Therefore, be sure that the disclosures are easily found on mobile, web, or other devices or platforms.
• If you’re creating a space-constrained ad, it may be appropriate to include the disclosure information on the landing page you’re asking consumers to click on.
  • Be sure the link is obvious and labeled appropriately, so consumers know where to find disclosure information
  • Use the same link in every ad to encourage consistency
  • Place the link close to the qualifying information
  • Monitor click-through rates to determine the effectiveness of the link to the disclosure
• Avoid making consumers scroll through an ad to find disclosure messages
• Include disclosures before a consumer is told to purchase. For example, before they can add it to their cart, have the disclosure be visible in some way
• Include disclosures as often as needed, which is particularly useful for lengthy copy
• Disclosures do not replace “Terms of Use” legal language
• Assess the ad consistently to ensure the disclosure information is not hidden within the ad design
• When the ad is audio-based, the disclosure must also be heard in a strong volume and paced speaking
• Always write disclosures using simple language that the average person can easily understand

If Compliance is Impossible, Rework the Ad. For example, the disclosure language may be easily visible and adhere to the FTC guidelines when a consumer is on a computer, but it may be impossible to see on a mobile device. Therefore, make the decision to not run the ad on a specific platform that will not support the disclosure in the way it’s designed.