A telemarketer is required to disclose all restrictions of a product or service he is offering.
Advertising is important to a business to attract customers and generate revenues. Consumers and their advocates generally accept advertising as long as it is providing complete and honest information. They are less tolerant of misleading or deceptive advertisements and may sue a business, whether or not the deception was intentional. In addition to federal laws, each state has its own consumer-protection regulations, which businesses must follow carefully to stay out of trouble.
Consumer Protection Laws
An advertisement may violate consumer protection laws if it is misleading. A misleading advertisement may hawk a bedspread for $50 but fail to mention that it is defective. A consumer could be misled into believing that the product is of good quality. Misleading advertising laws apply to any advertising medium -- television, radio, newspaper, direct mail and other forms of advertising.
Deceptive Pricing Laws
Misstating the prices charged by your competitors is considered deceptive and may be a violation of the law. Also, when you advertise a sale, if your actual price is different from what you have advertised, your discount is misleading. Offering a free product which turns out to have a price attached, no matter how small, is also considered deceptive. The Federal Trade Commission Act (FTC) allows action against businesses accused of engaging in deceptive pricing and false advertising.
Telemarketing Sales Laws
The Telemarketing and Consumer Fraud and Abuse Prevention Act sets rules governing telemarketing fraud and violation of privacy. The law requires telemarketers to provide information about the goods or services they are offering so that the consumer can make an educated decision without being misled. The telemarketer must disclose cost and payment terms, restrictions -- such as a vacation certificate that cannot be used during the summer -- the refund policy and a variety of other required information.
Online Protection Laws
Under the Securely Protect Yourself Against Cyber Trespass Act (SPY), it is against the law to manipulate certain online advertisements on users' computers. A violation of the act occurs if an advertisement can only be closed by turning off a computer or closing an Internet browser. Another violation occurs if a user's computer browser is modified to manipulate it into redirecting the user to a Web page other than what the user was seeking, or to a certain page when the browser is launched.
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