218 Chapter 25

Cease-and-desist order

FTC order requiring that a company stop its illegal behavior

Ad substantiation

FTC standard requiring that advertisers have a reasonable basis for the claims made in their ads

Federal Trade Commission

Independent federal agency with 5 commissioners appointed by the president and confirmed by the Senate

Deceptive Advertising

Practice of advertising with claims that mislead or could mislead a reasonable consumer

Truth in Lending Act

Require that sellers disclose the terms of the credit or loan to help consumers compare a variety of credit lines or loans and understand this disclosure of terms

Unsolicited Merchandise

Treat item as a gift

Corrective advertising

advertising in which the company explicitly state that formerly advertised claims were untrue, counter advertising

Multiple-product order

form of cease and desist order issued by the FTC that applies not only to a specified product but also to other products produced by the same firm

half-truth

info that is true but is not complete

Industry guides

interpretations of consumer laws created by the FTC to encourage businesses to stop unlawful behavior

Consent order

statement in which a company agrees to stop disputed behavior but does not admit that it broke the law

Consumer Law

statue or administrative rule serving to protect consumer interests

Puffing

use of generalities and clear exaggerations