Question
Ethics Charles of the Ritz Distributing Corporation ( Ritz) was a New York corporation engaged in the sale and distribution of a product called Rejuvenescence
Ethics Charles of the Ritz Distributing Corporation ( Ritz) was a New York corporation engaged in the sale and distribution of a product called Rejuvenescence Cream. The extensive advertising campaign that accompanied the sale of the cream placed emphasis upon the supposed rejuvenating powers of the product. The ads claimed that the cream would bring to the users skin quickly the clear radiance and the petal- like quality and texture of youth. Another advertisement claimed that the product would restore natural moisture necessary for a live, healthy skin with the result that Your face need not know drought years. The Federal Trade Commission ( FTC) learned of the ads and asked several experts to investigate the claimed benefits of Rejuvenescence Cream. The experts reported to the FTC that it is impossible for an external application of cosmetics to overcome skin conditions that result from physiological changes occurring with the passage of time. The FTC issued a cease- and- desist order with regard to the advertising. Ritz appealed the FTCs decision to a federal court. Has Ritz acted ethically in making its advertising claims? Who wins?
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