As a business owner it is important to understand all of the rules and regulations surrounding the lawful operation of your business. It may not be something that very small businesses think about but they are just as obligated to the same rules as larger corporations in regards to advertising, marketing, or any other promise or representation about guarantees or warranties. These laws and governmental rules and regulations are enforced by the federal trade commission and must be complied with.
Advertisers should disclose or make known whether a warranty is full or limited, what its duration is, any major limitations, and exclusions, or costs and/or responsibilities of the consumer. The following guidelines should be applied:
A copy of the actual warranty or guarantee should be submitted to Broadcast Standards and Practices with the advertisement.
Any commercial referencing a warranty or guarantee must clearly disclose that it is available to review prior to a consumers purchase or disclose the terms and limitations. This can be disclosed in either audio form or as part of the video portion of the commercial as a printed section that is viewable for at least 5 seconds.
Money back guarantees, 30-day free trial, or similar representations will be understood to be a guarantee of a full price refund at the choice of the consumer. Any conditions such as time periods limiting the return of a product should also be disclosed.
If lifetime or life or any similar language is used in advertising the duration of a guarantee, and it refers to any other life than that of the consumer or original user, the life referred to must be clearly defined.
A guarantee that constitutes a claim such as “guaranteed to improve gas and bloating” must substantiate any claims as well as comply with the above guideline regarding disclosure of information before purchase.
Networks also have specific policies in regards to the use of guarantees and warranties in advertisements so it is important for those marketing these claims to be familiar with and comply with the network guidelines.
If we can assist you in any way, please contact us or call (404) 262-6505