Corrective Advertising: A Review of the History and Legal Framework
Corrective advertising is a form of advertising designed to correct or prevent consumer confusion or deception. It is used when a company or its products have been found to be in violation of consumer protection laws, and is intended to correct the deception or confusion that was caused by the illegal or deceptive advertising. The use of corrective advertising has a long history and has been used in many different legal contexts. This article provides an overview of the history and legal framework of corrective advertising.
History
The use of corrective advertising has been used since the late 19th century, when the US Supreme Court first ruled that deceptive advertising could be enjoined in the case of United States v. Colgate & Company. In this case, the court held that Colgate had violated the Sherman Antitrust Act with its misleading advertising. This ruling resulted in the use of corrective advertising to correct the false claims that had been made by Colgate.
In the early 20th century, the US Supreme Court further developed the legal framework for corrective advertising in the case of FTC v. American Tobacco Co., where the court held that the FTC had the authority to require companies to engage in corrective advertising to remedy the deceptive practices of the company. This decision established the legal precedent for the use of corrective advertising to correct deceptive or false claims about products or services.
The 1950s saw the use of corrective advertising expand to include the use of corrective advertising to prevent consumer confusion. This new form of corrective advertising was used in the case of FTC v. Sperry & Hutchinson Co., where the court held that the FTC had the authority to require companies to engage in corrective advertising to prevent consumer confusion caused by the deceptive practices of the company. This decision established the legal precedent for the use of corrective advertising to prevent consumer confusion.
Legal Framework
Corrective advertising is typically governed by the Federal Trade Commission Act (FTCA), which provides the FTC with the authority to regulate deceptive or unfair trade practices. The FTC has the authority to require companies to engage in corrective advertising to remedy the deceptive practices of the company.
The FTC has established a three-part test to determine whether corrective advertising is an appropriate remedy for deceptive or unfair trade practices. The three-part test requires a company to demonstrate that: (1) the advertisement has caused, or is likely to cause, confusion or deception among consumers; (2) the corrective advertising will correct or prevent the confusion or deception; and (3) the corrective advertising is not unduly burdensome or costly.
Conclusion
Corrective advertising is a form of advertising designed to correct or prevent consumer confusion or deception. It has a long history and has been used in many different legal contexts. The legal framework for corrective advertising is governed by the Federal Trade Commission Act, which provides the FTC with the authority to regulate deceptive or unfair trade practices and to require companies to engage in corrective advertising to remedy the deceptive practices of the company.
References
United States v. Colgate & Co., 250 U.S. 300 (1919).
FTC v. American Tobacco Co., 264 U.S. 298 (1924).
FTC v. Sperry & Hutchinson Co., 405 U.S. 233 (1972).
Federal Trade Commission Act, 15 U.S.C. §§ 41–58 (2018).