Risk Management

4/30/2015

1

Advertising

Image from: http://www.directcpv.com/blog/trends-in-the-online-advertising-industry-social-media-advertising/

Example Logos

4/30/2015

2

Image from: http://pantheonuk.org/pantheon-uk-review-make-marketing-effective/

Advertising Mediums

Consumer Protection

• Laws and regulations are designed to protect consumers from false and/or deceptive advertising

4/30/2015

3

Statutes and Regulations

• UCC

• Lanham Act

• State statutes against deceptive trade practices

• FTC – Deceptive pricing and quality claims

– Testimonials

Unfair Competition

• Trademark infringement

• Passing off

• Dilution

• Falsely disparaging competitors

• Right of publicity

• Penalties – Court injunction

– Criminal penalties

4/30/2015

4

Internet Sales: Keep in Mind

• Put jurisdiction and choice of law in all agreements

• Passive website vs. active selling

Summary

• Advertising is important part of business – But remember, there are limits

• Statutory and regulatory rules are designed to prevent false and deceptive advertising and unfair competition

• Keep in mind the implications of targeting customers with Internet sales