1. Research the FTC's deceptive advertising policy and report on another case involving substantiation of specific claims.

2. The advertising industry has established the National Advertising Division (www.NAD.org), which oversees a self-regulatory process administered by the Council of Better Business Bureaus. Compare and contrast how this body resolves deceptive advertising cases with how the FTC handles cases, and then report on a case handled by this process.

Several well-known companies are making headlines after paying huge fines to settle deceptive advertising complaints with the Federal Trade Commission (FTC). Skechers, the leading toning shoe company, agreed to pay $40 million to settle charges of unsubstantiated claims. Skechers made billions claiming its shoes were more effective in toning posture and buttock muscles compared to regular walking and running shoes. Celebrities such as Kim Kardashian and Joe Montana endorsed the products. The FTC said the study on which the claims were based did not even conclude what was claimed in the ads. Not helping Skechers' case was the fact that the study was conducted by the husband of a Skechers marketing executive. Reebok, after making similar claims, settled with the FTC for $25 million. Other well-known companies recently settling with the FTC over deceptive advertising claims are POM, Dannon, Oreck, and Nivea. Dannon settled for $45 million after featuring Jamie Lee Curtis touting the digestive regularity benefits of Activia yogurt. Oreck and Nivea got off relatively cheap. Oreck had to pay only $750,000 to settle the complaint against its claim that its vacuum's ultraviolet light and filter killed and trapped flu and other germs, and Nivea had to pay only $900,000 to settle the complaint against claims that its My Silhouette! skin cream reduced a user's body size.