The author compares recent developments involving the Uniform Commercial Code (UCC) and the Federal Trade Commission (FTC) on the legal treatment of puffery claims in advertising. The author offers the opinion that changes now being made in the UCC will create a more appropriate approach to puffery than the longstanding unchanged position of the FTC.
To be regulated by the FTC, an advertising claim must be both deceptive and material. Much attention and research has been directed to deception, but almost no study has been done on materiality. However, a recent case has highlighted the need for better understanding of this legal requirement. The authors explore the genesis and evolution of the materiality standard explain the pitfalls awaiting advertisers who try to prove their claims immaterial, and outline several considerations for empirical testing of advertisements.
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