The Deceptive Advertising Claims by New Balance and Saucony
What were the advertising claims made by New Balance and Saucony in 1995?
The Federal Trade Commission issued a complaint against the manufacturers of New Balance and Saucony athletic shoes based on their "Made in the USA" advertising claims. The FTC claimed the ads were misleading since imported soles and upper parts were used to make the shoes. Regarding this issue, what can these claims be classified as under the FTC's requirement?
Answer:
The deceptive advertising claims by New Balance and Saucony can be classified under the Federal Trade Commission's requirement for 'advertising substantiation'.
In 1995, the Federal Trade Commission filed a complaint against New Balance and Saucony for their misleading advertising claims. The companies had been promoting their athletic shoes as "Made in the USA" when in reality, imported materials were used in the production process. This deceptive practice led the FTC to enforce regulations on advertising substantiation.
Advertising substantiation requires companies to provide sufficient evidence to support their advertising claims before releasing them to the public. This ensures that consumers are not misled by false or deceptive advertisements. In the case of New Balance and Saucony, their failure to substantiate the "Made in the USA" claim resulted in the FTC's intervention and the subsequent complaint.
By understanding the importance of advertising substantiation, companies can avoid legal issues and maintain transparency in their marketing strategies. It is crucial for businesses to uphold integrity and honesty in their advertising practices to build trust with consumers and comply with regulatory standards.