FTC'S PITOFSKY PLANS TO HOLD STEADY ON NATIONAL ADVERTISING ENFORCEMENT PROGRAM

Will Increase Emphasis of Self Regulation, Media Screening and New Remedies

Federal Trade Commission Chairman Robert Pitofsky told a group of advertising executives that he encourages expanded media screening of ads and being more aggressive in ensuring the Commission uses all the remedies available to it -- from cease and desist orders to corrective notices and other forms of consumer education, to redress and civil penalties, to corrective advertising where appropriate. The agency continues its record of strong enforcement against false and deceptive claims, he said. Pitofsky said future adjustments may be necessary to reflect changing conditions in the marketplace -- including technological changes such as the growth of the Internet as a marketing medium, and the globalization of consumer protection issues.

Pitofsky heralded the advertising industry's self-regulation program as a model of effectiveness, and noted the FTC's recent endorsement of programs in the medical insurance and funeral industries to boost compliance with FTC-enforced regulations. He called on the media to expand advertising screening programs, such as those of the major networks, to other forms of media, broadcast, electronic and print, to prevent ads with facially implausible claims from continuing to "slip through the cracks." Toward that end, he said, the FTC had in some recent cases identified by the name the media in which challenged advertising ran.

Reducing consumer fraud also remains an important FTC goal, but being successful depends on doing "a better job of inoculating consumers against frauds in the first place," Pitofsky said.

As to remedies, Pitofsky cited several cases exemplifying the Commission's use of a broader range of consumer education and financial remedies, and said he believes the Commission should consider corrective advertising in appropriate cases.

<-- Back

Copyright © 2008 by Tantrum Incorporated