Introduction

Some advertisers make questionable claims on web sites or in promotional e-mails that they would never make in print advertisements or television commercials. However, consumer protection laws and regulations on misleading advertising issued by the Federal Trade Commission apply to online marketing.

The FTC has tried to stanch misleading and fraudulent online advertising for years. While the Commission has made diligent efforts, until recently it was unable to devote a significant amount of resources to the problem. As a result, the problem has ballooned. In late 2001, however, Timothy J. Muris, the FTC's new chairman, vowed to crack down on companies and individuals that engage in duplicitous marketing through the Internet. Muris has pledged to double the resources devoted to the problem over the next year and to take a much harder line with companies that intentionally or negligently mislead the public.

Muris's policy means that advertisers will have to exercise greater care regarding the online claims they make in the future. Advertisers must, therefore, gain a greater understanding of the FTC's views on the applicability of federal advertising rules to the Internet.

FTC Advertising Regulations and the Internet

The FTC is very clear regarding the applicability of its regulations to online marketing. In essence, the Commission has taken the position that all of the laws and regulations applicable to print advertisements, television and radio commercials, and telemarketing apply to the Internet as wel