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Industry: Email Alert RSS FeedEarnings claims in new marketing techniques get informal FTC review.(Legal/Legislative)(Brief Article)
Franchising World, April, 2004
A new Federal Trade Commission informal staff advisory addresses for the first time the application of the Franchise Rule's general media earnings claims provisions to new marketing techniques, such as pop-up screens and banner advertisements on Web sites and commercial bulk e-mails.
Under the Franchise Rule, it is deceptive for franchisors and franchise brokers to make oral, written or visual representations to prospective franchisees that state specifics levels of potential sales, income, gross or net profits unless it satisfies disclosure obligations and provides prospective franchisees with an earnings claim document. A claim doesn't have to be made directly to a specific prospective franchisee to trigger the rule's earnings claims provision. In fact,...
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