Which of these statements is TRUE regarding truth in advertising violation penalties?

Which of these statements is TRUE regarding truth in advertising violation penalties?

• A. The Federal Trade Commission determines the severity based on the violation's severity.
• B. State agencies handle all penalties.
• C. Violations result in fixed penalties only.
• D. Penalties are determined by the involved parties.

Answer: (A)

The statement that the Federal Trade Commission determines the severity based on the violation's severity is correct. The FTC plays a crucial role in enforcing truth-in-advertising laws and evaluates violations on a case-by-case basis. When assessing a violation, the FTC considers several factors, including the nature of the misleading information, the potential harm to consumers, and whether the violation is part of a broader pattern of deceptive practices. This flexible approach allows the FTC to impose appropriate penalties that reflect the specific circumstances of each case, ensuring that the enforcement of truth-in-advertising laws is effectively tailored to discourage dishonest marketing practices.

The statement that the Federal Trade Commission determines the severity based on the violation's severity is correct. The FTC plays a crucial role in enforcing truth-in-advertising laws and evaluates violations on a case-by-case basis. When assessing a violation, the FTC considers several factors, including the nature of the misleading information, the potential harm to consumers, and whether the violation is part of a broader pattern of deceptive practices. This flexible approach allows the FTC to impose appropriate penalties that reflect the specific circumstances of each case, ensuring that the enforcement of truth-in-advertising laws is effectively tailored to discourage dishonest marketing practices.