The advertising industry operates within strict federal regulations and is monitored by the Federal Trade Commission. Even with truth-in-advertising laws in place, advertisers have significant leeway to violate the ethical standards of a wide range of consumers. Advertisers have to be especially careful to act ethically at all times, taking extra care when advertising to children, advertising potentially harmful products and using psychological tactics to stimulate demand. Having a list of ethical and legal issues at hand when creating advertisements can help you to craft legal, responsible ad messages

Truth in Advertising

The Federal Trade Commission Act set forth requirements for truth in advertising and created the FTC to enforce the provisions of the act. The Bureau of Consumer Protection's Business Bureau notes that advertisements in the U.S. must by truthful, not deceptive and not unfair. Advertisers must also have evidence available to back up claims they make. The FTC defines deceitful statements as those that are likely to mislead consumers who act reasonably under normal circumstances and that are likely to affect consumers' purchase decisions. The FTC defines unfair advertisements as those that are likely to cause substantial, unavoidable injury