The FTC'S ‘Reasonable Basis’ for Substantiation of Advertising: Expanded Standards and Implications

Abstract
In an order issued September 9, 1981 in American Home Products (I), the Federal Trade Commission elaborated its “reasonable basis” requirement for the substantiation of advertising claims and set standards for the proof of comparative superiority claims for analgesics. The American Home Products decision also addressed the issue of the necessity for corrective advertising to ameliorate the lingering effects of past deceptive advertising. The purpose of this paper is to present the Commission's theories of deception and its remedies and to discuss the implications for advertisers.

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