Also called commercial speech. Private corporations enjoy limited First Amendment protections as determined by the Commercial Speech Doctrine as defined in the Central Hudson case.
Deception: A misrepresentation/omission that is likely to mislead a reasonable consumer.
Puffery: The Federal Trace Commission (FTC) allows exaggerated claims about products and services, for example when a pizza company claims to have "the number one pizza" or the "best pizza." These statements are generalized exaggerations and are not likely to mislead a reasonable pizza customer.
Substantiation: Advertisers must have reasonable evidence of verifiable claims they make about their products. If the pizza maker boasts about 23 ingredients, there has to be evidence of the said ingredients.
Celebrity Endorsement: An celebrity endorser must use the products/service he/she endorses during the duration of the advertising campaign.
The FTC enforces violations via:
Cease-and-desist orders: By ordering the advertising campaign to end.
Demanding corrective advertising: By ordering that the deceptive claims be expunged from the campaign.
Court injunctions: Using court order to stop an advertising campaign.
Civil and criminal penalties: Failure to heed cease-and-desist orders may lead to fines and jail time.