Which law governs truth-in-advertising practices in the United States?

• A. The Sherman Act
• B. The Federal Trade Commission Act (FTC Act)
• C. The Lanham Act
• D. The Clayton Act

Answer: (B)

Truth-in-advertising is governed by the Federal Trade Commission Act. This law gives the FTC the authority to prohibit unfair or deceptive acts or practices in commerce, which includes advertising. The FTC requires advertisers to have substantiation for factual claims and to avoid misleading omissions or endorsements that could mislead consumers. When ads cross the line, the FTC can enforce corrective action, stop orders, or other remedies to protect consumers. Other laws exist that touch on false advertising in specific contexts—such as the Lanham Act, which can address certain false statements related to brand origin or sponsorship—but the overarching framework for truth in advertising is the FTC Act.