false-advertising
Is there federal liability for broadcasting a false advertisement
<p>In the USA is there federal liability to a broadcaster if that broadcaster transmits an advertisement that makes a false commercial claim? For the scenario that I am thinking about, the advertiser has no knowledge that the claim is false and is not in a position to determine the truth of the claims made in the advertisement.</p>
<p>Ex: The WXYZ station broadcast an ad that Acme brand ferret oil will make your hair grow, but this product has no effect on actual hair growth.</p>

<p>There can be liability. <a href="https://www.law.cornell.edu/uscode/text/15/52" rel="nofollow noreferrer">15 USC 52</a> says that &quot;It shall be unlawful for any person, partnership, or corporation to disseminate, or cause to be disseminated, any false advertisement&quot;. In the case <a href="https://casetext.com/case/standard-oil-co-of-california-v-f-t-c" rel="nofollow noreferrer">Standard Oil v. FTC</a>, 577 F.2d 653, one of the petitioners was Batten, Barton, Durstine Osborn, an advertising agency. In this particular case, using a set of tests established by previous case law, the court find that &quot;BBDO knew or should have known of the deceptive nature of the F-310 advertising&quot;. See p. 13ff of <a href="https://www.ftc.gov/sites/default/files/attachments/training-materials/enforcement.pdf" rel="nofollow noreferrer">this FTC document</a> regarding advertising agency liability, which summarizes the situation that</p>
<blockquote>
<p>An ad agency does not have to substantiate independently the claims or
scientifically reexamine the advertiser’s substantiation.  However, it
cannot ignore obvious shortcomings or facial flaws in an advertiser’s
substantiation.</p>
</blockquote>
<p>Cases also include catalog marketers, infomercial producers and even Home Shopping Network. Given the right knowledge, a broadcaster could therefore be liable, if they know they are broadcasting false advertising.</p>
