Chapter 9

Truth-in-Advertising and Sustainable Product Design

All companies, whether or not they are pursuing sustainable strategy, must be fair and truthful when marketing products and services, consistent with the rules governing advertisements set forth by the U.S. Federal Trade Commission (FTC). Specifically, it is unlawful for a business to use unfair, deceptive, or false statements in an advertisement for the purpose of encouraging consumers to buy products and services.3

What does it mean to say an advertisement is deceptive? According to the FTC’s Deception Policy Statement, an ad is deceptive if it contains (or omits) information that is likely to mislead consumers acting reason­ably under the circumstances, and it is material in the ...

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