Deceptive Advertising is a huge problem that is looked at by the FDA, FTC, and FCC constantly. But is there more deception in labeling than in advertising that is being overlooked? Review as many of the following terms and comment on what deceptions there might be in labeling if any with these terms: organic, natural, all natural, low fat, free range, low-calorie, diet, high fiber, gluten-free, 100%pure, and lite. Find the definitions, provide your citation or source, and comment on the concerns. What do you think your chicken is eating when he is home on the range?
Professor comment :
Should it not be deceptive to keep the size of the can the same as we are accustomed to and decrease the content. A can of tuna used to be 7 oz., it is now closer to 5 oz., yet the can is the same size. A box of cereal the same size, but the content has settled during shipping. Actually there is just less in there. How about a can of soda that now has 11.5 ounces. They are selling bacon in 12 ounce instead of 16 ounce sizes with the (usual) price posted, so you don't think much of it until you more closely examine it.
Is this not "deceptive"? What types of disclosures should we require here if any?
Chapter 32 outlines the multitude of protections in place in our society by our government to protect its citizens from corporate abuses and neglect of responsibility. Before the advent of modern laws enacted to protect unsuspecting consumers, society operated under the doctrine of caveat emptor(buyer beware). Starting signicantly with the Food Drug & Cosmetic Act of 1938, which created the Food and Drug Administration and continuing with the Food Labeling & Education Act of 1990, as well as the Clean Air Act, CERCLA(The Superfund Law), The Civil Rights Act, The Fair Housing Acts, and The Consumer Products Safety Acts citizens of this country have increasing protection from dangers associated with use of consumer products, pollution, and added protection to their overall environment. The Food and Drug Administration monitors and controls licensing and enforcement for Food Products, Additives, Drugs, Cosmetics, and Medical Devises. Their powers include the right to recall any food, drug, device, or product that endangers the public well being. They have additionally the power to Order the seizure of products, removal of products from the marketplace, obtain injunctions and search warrants, and le criminal prosecutions if they deem it warranted. As you know food must be "unadulterated", meaning it cannot be lthy, putrid, contain decomposed substances in it, or othenNise unt for consumption. OthenNise the food can pulled from the market. It does not mean that the food must be perfect, it can have inpurities, but must be t for consumption. See page 862, 809. Remember the lengthy period of time required before a drug can get approval from the FDA to be placed on the market. The FDA has the right to pull any drug off the market that has a history of isssues, although there has been inconsistent enforcement of that rule. Labeling laws now require disclosure of content, manufacturer, place of manufacture, ingredients, and nutritional levels. Specically, the Fair Packaging and Labeling Act requires that food product labels identify: 1. the product accurately, 2. the net quantity, if number of servings is stated then size of serving, 3. the manufacturer, and 4. the packager or distributor.(P.860, 809)There also cannot be any unsubstantiated health claims. The Nutrition Labeling & Education Act requies food to contain "standard nutrition facts such as fat%, calories, and regulates "terms" such as "fresh" ,"low fat", "natural", "organic" and "free range" to namejust a few.(P.860, 810-11) In the product area we have the Consumer Products Safety Commission which can authorize product recalls, requirements to repair, replace or otherwise correct issues with products placed in the marketplace by manufacturers, wholesalers & distributors.(P.863, 811) Please also read the summary of these acts and their application on page 836. The Federal Trade Commission Act of 1914 created the Federal Trade Commission(Fl'C) that regulates many types of deceptive trade practices including deceptive advertising(P.857-9, 803). The advertising industry is regulated by these laws, which allows "puffery"-sales pitching-"the best computer you will ever own", "it will last you a lifetime" type of advertising, but prohibits advertising that a reasonable consumer would be misled by. Each case is looked at on a case by case basis with the FTC being able to issue nes, cease and desist orders, and even criminal action. The advertiser has the responsibility to "substantiate the accuracy of their claims", not the FTC proving that the claims are untrue. The regualtion covers all types of adsvertising including the internet. A category of deceptive advertising is bait and switch where a company advertises a product at a very low price, then when the consumer gets there tells them that they don't have it or it is of inferior quality and switches them to the more expensive and profitable product they carry.(P.858, 804) This is prohibited and can result in heavy nes, and cease and desist orders being issued. Telemarketing and Fax Advertising are regulated under the Telephone Consumer Protection Act of 1991 . The act prohibits automatic telephone dialing with a pre-recorded message, and no direct solicitation by fax without the recipient's permission. The act is enforced by the Federal Communication Commission(FCC). An amendment to the law established the federal "Do Not Call Registry" that prohibits telemarketers from from not contacting those on the list.(Page 861, 807). There are also a multitude of laws that govern door to door sales, mail-order, and unsolicited merchandise. Regulation Z issued by the Federal Reserve Board of Governors requires compliance with the federal Truth-ln-Lending Act and the FTC requires a 3 day right of rescission on all door to door sales.(P.865, 808) There a multitude of laws providing credit and personal nancial protection. From privacy laws, to truth in lending laws, to equal credit acts, to the Civil Rights Act of 1963, to fair credit reporting acts, to identity theft acts, to fair debt collection practices, there are constant laws being enacted to try and plug any hole that provides a problem to the public. There are new laws being issued regularly to apply to internet transactions, as that type of consumer sale has exploded in volume and in sophistication over the last several years. Acts dealing with Spam for example, Phishing, Vishing, and viruses, as well as automated sales. Environmental Law is an area of the law where there is control on both the state and federal level. If the federal agencies issue a rule or regulation or if a federaql statute exists, it pre- empts the state laws. For example in New York we have both the Department of Health and the Department of Environmental Conservation(DEC) which have laws, and rules and regulations governing wetlands. However, if those wetlands are also classied as federal wetlands then their control and jurisdcition is handled by the federal government under the Army Corp of Engineers. The Environmental Protection Agency(EPA) is the primary agency regulating air, water, and noise polllution.(P.869, 816-8). We have the Clean Air Act, which allows the EPA to establish emission standards for vehicles, factories, and power plants. We have the Clean Water Act which limits the discharge into surface waters. The Safe Drinking Water Act establishes federal standards for pollutants and minerals in our drinking water.(P.871, 821). There are laws governing Toxic Chemicals, such as pesticides(F|RRA1947) (P.8745, 822), and Toxic Substances such as household waste under (RCRA-1976)(P.875, 823). We also have the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (CERCLA), alkla the Superfund law that places the liability for any toxic conditions on the current owner regardless of whether caused the problem or even knew of the problem with their property.(P.876, 823) It is then up to the current owner to track down the responsible party. If the current owner does not clean it up, then the federal government can and charge the current owner the expense as well as impose nes, and even prosecute them criminally
