One of the main issues for small businesses when advertising
is ensuring that they do not engage in advertising that could be considered
“deceptive.” An advertisement is
generally considered deceptive if it is materially misleading or materially
misrepresentative regarding the product or service advertised. For example, a deceptive advertisement may misrepresent
the actual cost of a service or claim that a product is capable of doing
something that it actually cannot do.
Any claims made in an advertisement must be able to be substantiated. Advertising can also be deemed deceptive if
it is unfair, generally when the message is conveyed through unethical or
unscrupulous means.
State and federal law also place specific restrictions on
telephone and email advertising, such as the need to register and make certain
disclosures with the Secretary of State. Small business owners also need to be aware of
and abide by the “do not call list” when doing telephone and email advertising.
Finally, small businesses should also be aware that there may
additional limitations and regulations related to advertisements for certain
types of products or services. For
example, federal law imposes additional limitations on advertisements for food,
drugs, devices and cosmetics while Texas law imposes limitations on gas
stations, professional service businesses, and bars or liquor stores, in
addition to other types of products and services.