Advertising Law for Small Businesses: A Practical Faq

41 questions on advertising law for small businesses, answered and cited by the UpLaw editorial team.

• Am I responsible for claims my advertisement only implies but never actually states?
• Are there special advertising rules for regulated products like credit, warranties, or mail-order sales?
• Are there special rules for endorsements, testimonials, and influencer posts?
• Can I feature an unusually good customer result if I add “results not typical”?
• Can my ad agency or an influencer be on the hook, not just my brand?
• Do celebrity and expert endorsements carry extra requirements?
• Does complying with federal law mean my advertising is legal in every state?
• Do glowing customer reviews substantiate a claim I make in my advertising?
• Do I need parental consent to advertise to or collect data from children?
• Do I need permission before sending marketing emails?
• How can a competitor sue me over my advertising under the Lanham Act?
• How do I properly disclose a paid or incentivized endorsement?
• How many people have to be misled before an ad is illegal, and who counts as the “reasonable consumer”?
• How much proof counts as “enough” to substantiate a claim?
• How much testing do I need before claiming my product is better than a competitor's?
• If I give an influencer free product, does the post have to disclose it?
• Is it illegal to buy fake reviews or suppress negative ones?
• Is it legal to name a competitor in my advertising?
• Is it safe to put “eco-friendly” or “green” on my packaging?
• Is there a cheaper, faster alternative to suing a competitor?
• We offer a money-back guarantee—doesn't that cover us on our claims?
• What are “negative option” and auto-renewal offers, and what are the cancellation rules?
• What are the rules for running a sweepstakes or contest?
• What are the rules on “sale” prices and “was/now” comparisons?
• What are the three basic rules every advertisement has to follow?
• What evidence do I need before I can make a claim in my advertising?
• What is an “establishment claim,” and what does saying “clinically proven” require?
• What is “bait and switch,” and why is it illegal?
• What is my real exposure if I send marketing texts without proper consent?
• What is “native advertising,” and how do I keep it legal?
• What is “puffery,” and why doesn't it need to be substantiated?
• What is the “net impression” of an ad, and can fine print or a disclaimer fix a misleading headline?
• What makes an advertisement “deceptive” under FTC law?
• What makes an advertisement “unfair,” as distinct from deceptive?
• What penalties can a business actually face for a false or deceptive advertisement?
• What rules apply if I sell goods or services over the phone?
• When can I advertise something as “free”?
• When can I say my product is “Made in USA”?
• Where does United States advertising law actually come from?
• Who can actually come after me if my advertising crosses a line?
• Who has standing to bring a Lanham Act false-advertising claim?