The document provides guidance from the FTC on disclosures for online and mobile advertising. Some key points are: disclosures cannot cure false claims and should be incorporated into claims when possible; hyperlinks used to disclose terms must be obvious, appropriately labeled, and take consumers directly to the qualifications; and material terms must be clear, conspicuous, and placed near the related claim before a purchase is made.
FTC's New .com Disclosure Guidance - Ad Age Mini Law Lesson
1. Mini Law Lesson: FTC’s New .com
Disclosures Guidance
Updated to Address Current Online and
Mobile Advertising Environment
Brian Heidelberger
Winston & Strawn
bheidelb@winston.com
3. General Rules
• Law hasn’t changed
• Disclosures can’t cure a false claim
• Can only qualify a claim to help keep it from being
misleading
• If information is material it must be clearly and
conspicuously disclosed
• Incorporate material limitations in the claim rather
than separate disclosure (when practical)
– If it can easily be incorporated in text, it should be
4. When Using a Hyperlink to
Disclose Material Terms
• Use an obvious link
• Label it to convey the information appropriately
• Don’t relegate material terms to “terms”
• Make links consistent in style
• Keep it close to the information is qualifies
• Take consumers directly to the qualifications on the
click-through
• Monitor click-through rates to assure effectiveness
5. Material Terms Must be
Clear and Conspicuous
• Try not to require scrolling
• If you require scrolling give text or visual cues
• Keep abreast of research on what consumers view on screen
• Make disclosures before and after people “add to cart”
• If sending people to store, make sure material limitations are
disclosed before they get there
• Repeat disclosures for long websites/or easily missed
• Don’t relegate important info to “legal”
• Audio Claims should have “audio” disclosures
• Make the limitations easy to understand
• Don’t make the ad if you can’t make it clear