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If the sale exceeds thirty 30 days, advertisers should be prepared to substantiate that the offering is indeed a valid price reduction and has not become their regular price. However, if that extension is for more than a short period of time, the advertiser must be prepared to substantiate that the offering is still a valid price reduction and has not become its regular price. In such an instance, the advertiser must avoid any undue or misleading display of the maximum. In such circumstances, the advertiser must comply with Section This may be the case where the advertiser's price for a product or service is not as low as or lower than a competitor's price.
At least thirty 30 days must elapse before another such offer is promoted in the same trade area. Representative language frequently used in such offers includes:. That selling price must be clearly and conspicuously disclosed in the advertisement. Such an offer may be misleading if it would disguise the true retail price or create the false impression that a reduced price or a special price is obtainable only by such trade in. The federal Truth in Lending Act, as well as applicable state and provincial laws set requirements for clearly and conspicuously disclosing credit terms in the advertisement.
They contain important provisions that affect any advertising to aid or promote the extension of consumer credit. Therefore, advertisers are advised to consult Section Examples of closed-end credit include installment loans and many automobile loans. Advertisers should consult the Cost of Borrowing Regulations set out in the Trust and Loan Companies Act, Bank Act and Cooperative Credit Associations Act for specific requirements concerning disclosure, terminology and layout conditions.
These regulations cover forms of closed-end credit, such as fixed credit loans for an automobile, as well as open-end credit, including credit cards and lines of credit. Consumer credit is also extended to consumers whose ability to pay or credit rating is below typical standards of credit worthiness;.
The finance charges and annual percentage rate do not appreciably exceed those charged to consumers who meet generally accepted standards of credit worthiness; and. The consumer is dealt with fairly on all conditions of the transaction, including the amount of the down payment, the period of repayment and the consequences of a delayed or missed payment.
They must only be used when all credit requests are approved. Whenever an advertiser mentions a price in advertising, the existence of any unavoidable or extra charges must be clearly and conspicuously disclosed in immediate conjunction with the price. This would include, for example, charges for delivery, installation, assembly, excise tax and postage and handling.
Instead, they must ensure that the consumer affirmatively consents either online, over the phone, or in person to the negative option feature before enrolling the consumer in the plan. Its purpose is to switch consumers from buying the advertised product or service, in order to sell something else, usually at a higher price or terms more advantageous to the advertiser.
Subsequent full disclosure by the advertiser of all other facts about the advertised product does not preclude the existence of a bait scheme. An asterisk may be used to impart additional information about a word or term which is not in itself inherently deceptive.
The asterisk or other reference symbol must not be used as a means of contradicting or substantially changing the meaning of any advertising statement. Information referenced by asterisks must be clearly and conspicuously disclosed. However, abbreviations not generally known or understood by the average consumer must be avoided. Such advertising and bill of sale should also clearly and conspicuously disclose, as appropriate, that the product is offered with no warranty.
An advertiser may also describe the condition of the product if so desired. Truthful comparisons using factual information may help consumers make informed buying decisions, provided:. Superlative statements in advertisements about the tangible qualities and performance values of a product or service are objective claims for which the advertiser must possess substantiation as they can be based upon accepted standards or tests.
Such claims are not subject to the test of truth and accuracy and would not need substantiation. Puffery also includes general claims of superiority over comparable products that are so vague that it can be understood as nothing more than a mere expression of opinion. Rebate promotions also must clearly and conspicuously disclose any additional terms and conditions that consumers need to know, including the key terms of any purchase requirements, additional fees, and when consumers can expect to receive their rebate.
Claims relating to performance, energy savings, safety, efficacy or results for a product or service should be based on recent and competent testing or other objective data.
Qualifications for any claim must be clear, conspicuous and understandable. Advertisers must not highlight small or unimportant benefits.
For items entering the solid waste stream, advertisers should substantiate that the items completely decompose within one year after customary disposal. Thus advertisers must either possess competent and reliable scientific evidence that this is the case or clearly and conspicuously qualify the claim to avoid confusion. If that certification or seal was not, in fact, awarded by an independent third party, the advertisement must clearly and conspicuously disclose that fact.
Because claims making general environmental benefits should not be used see section For detailed guidance, advertisers in the U. A guide for industry and advertisers. All significant parts and processing that go into the product must be of U.
That is, the product should contain no — or negligible — foreign content. However, advertisers must avoid making these claims if a significant amount of assembly or material of the product was not completed in the U.
In both cases, the last substantial transformation of the product must have occurred in Canada. Native ads may appear on a page next to non-advertising content on news or content aggregator sites, social media platforms, or messaging apps.
In other instances, native ads are embedded in entertainment programming, such as professionally produced and user-generated videos on social media. In still other instances native ads appear in email, infographics, images, animations, and video games. This includes native ads or links to native ads that appear to be news or public interest stories, but are actually materials promoting products or services.
The more a native ad is similar in format and topic to the non-commercial content on a site, the more likely it is to mislead a consumer and require a disclosure to prevent deception. It is subject to the same standards of truthfulness and substantiation as any other price claim made for a single product. The Federal Trade Commission FTC has provided guidance on making disclosures in traditional media and online at business. It is the responsibility of the advertiser to ensure that disclosures are noticed and understood by consumers.
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