In some cases, an advertisement may be considered misleading even if it does not
deceive its audience. This is because the court can determine that the
advertisement is not truthful without deceiving anyone. Unqualified statements and
silence in advertising are examples of such misleading practices. Here are some
examples of news articles and advertisements.
False or Misleading Advertising
When you see something on TV, in a commercial, or in print, that is clearly false or
misleading, it’s time to take action. You can file a complaint, and you may even get
compensated. Most brands want to avoid bad PR and unhappy customers, so don’t
be afraid to speak up. Use social media and review sites to let them know what you
The FTC has broad authority to enforce these laws, and the agency has filed
numerous cases against fraudulent advertisers. The agency typically starts the
process with a cease-and-desist letter, which requires the company to stop using the
disputed claims. If the company ignores the letter, the agency may file a lawsuit to
stop the advertising or stop the product from being sold. The FTC can also impose
fines and monetary damages against the company, as well as order the company to
admit to its mistakes.
False or Misleading News Articles
False or misleading news articles may damage the reputation of a news source or a
business. Luckily, there are steps you can take to have these articles removed from
the internet. The first step is to notify publishers about the false or misleading
information. You can do this by sending an email with supporting evidence and a
paper trail. If you cannot get the article removed, you can also try to suppress the
negative search results.
Fake news is news that is intentionally based on falsehoods and presents a distorted
narrative. A recent study by Kavanagh and Rich examined the decline of facts in
American public life and proposed a typology of types of misinformation. The
typology included in the report contains graphics that outline the motivations behind
each type of misinformation.
Silence in Advertising
Silence in advertising has been found to have multiple benefits for ad design. For
example, it can help reinforce product attributes and benefits. This has led to
various studies examining how silence affects ad design and effectiveness.
However, most of these studies have focused on creative directors and their own
opinions, rather than examining how silence affects consumers. It is therefore
important to conduct studies on silence in advertising from the perspective of the
consumer, assessing their perception of brand attributes, attitudes, and behaviors.
The use of silence in advertising is not as new as one may think. Many Asian and
European newspapers use this tactic in their print advertising. However, silence in
advertising is still relatively new in the United States. To be effective, silent ads
should be placed between other elements, ideally in a vertical column. This is
because the eyeballing effect is greatest when the ad is placed in the middle of a
Unqualified Statements in Advertising
Unqualified statements in advertising can contain a material misstatement, such as
a price or service. Unqualified statements must be disclosed to prevent consumers
from getting a false impression. They must be accompanied by all relevant
information and avoid creating any unreasonable burden for consumers. Unqualified
statements are generally not appropriate for advertisements that promote products
or services that have negative effects on the environment.
Unqualified Statements in a Prospectus
Unqualified statements in a prospectus are statements that do not meet the
standards for true statements. For example, if a prospectus states that a particular
company’s debt securities are fully guaranteed by a bank, but that the debt
securities are not guaranteed by the same bank, it is an unqualified statement. If a
prospectus contains an unqualified statement, the reader may be concerned that the
company might be exaggerating its risk.
Financial statements should be audited and accompanied by an audit report.
Generally, these statements are audited by the chief financial officer, the chairman
of the audit committee of the board of directors, or the entity’s lawyer.
Unqualified Statements in an Offering Memorandum
In an offering memorandum, issuers may not include statements that are materially
misleading or untrue. For example, if a company offers security with a
prospectus stating that its securities are not risky, it can be misleading. This may
result in a civil action against the issuer. To avoid such consequences, issuers should
follow the instructions and forms required by the Securities and Exchange
Commission. They should also keep all information factual and reasonable.
A well-written offering memorandum can protect sellers from liability for making
unqualified statements. The document should explain the investment objectives and risks, as well as company financials and management biographies. The offering memorandum should also outline the terms of the private placement deal.