Advertising is regulated by both federal and state law. Under the law, your ad is unlawful if it tends to mislead or deceive. Your intentions don't matter either. If your ad is deceptive, you'll face legal problems even if you have the best intentions in the world. The following rules will help keep your ads within safe, legal limits.

• Rule 1: Be Accurate
  Make sure your ads are factually correct. Don't show a picture of this year's model of a product if what you're selling is last year's model, even if they look almost the same. Be truthful about what consumers can expect from your product. Don't say ABC pills will cure headaches if the pills offer only temporary pain relief. Don't claim a rug shampooer is a wizard at removing all kinds of stains when there are some it won't budge. "Waterproof" or "fireproof" means just that — not water resistant or fire resistant under some circumstances.
  
  
• Rule 2: Get Permission
  Does your ad feature someone's picture or endorsement? Does it quote material written by someone not on your staff or employed by your advertising agency? Does it use the name of a national organization such as the Boy Scouts or Red Cross? If so, get written permission. Under U.S. copyright law, the "fair use" doctrine allows limited quotations from copyrighted works without authorization from the copyright owner. In some circumstances, this doctrine provides legal justification for the widespread practice of quoting from favorable reviews in ads for books, movies, and plays — and even vacuum cleaners. With the exception of brief quotes from product or service reviews, you should always seek permission to quote protected material.
  
  
• Rule 3: Treat Competitors Fairly
  Don't knock the goods, services, or reputation of others by giving false or misleading information. If you compare your goods and services with those of other companies, check your information to make sure that every statement in your ad is accurate. Then check again.
  
  
• Rule 4: Have Sufficient Quantities on Hand
  When you advertise goods for sale, make every effort to have enough on hand to supply the expected demand. If you don't think you're able, state in your ad that quantities are limited. You may even want to state the number of units on hand. State law may require merchants to stock an advertised product in quantities large enough to meet reasonably expected demand, unless the ad states that stock is limited. Make sure you know what your state requires.
  
  
• Rule 5: Watch Out for the Word "Free"
  If you say that goods or services are "free" or "without charge," be sure there are no unstated terms or conditions that qualify the offer. If there are any limits, state them clearly and conspicuously. Let's assume that you offer a free paintbrush to anyone who buys a can of paint for $8.95 and that you describe the kind of brush. Because you're disclosing the terms and conditions of your offer, you're in good shape so far. But there are pitfalls to avoid. If the $8.95 is more than you usually charge for this kind of paint, the brush clearly isn't free. Don't reduce quality of the paint that the customer must purchase or the quantity of any services (such as free delivery) that you normally provide. If you provide a lesser product or service, you're exacting a hidden cost for the brush. Disclose any other terms, conditions, or limitations.
  
  
• Rule 6: Be Careful when You Describe Sales and Savings
  You should be absolutely truthful in all claims about pricing. The most common pitfall is making doctored price comparisons with other merchants or with your own "regular" prices.
  
  
• Rule 7: Observe Limitations on Offers of Credit
  Don't advertise that you offer easy credit unless it's true. You don't offer easy credit if: You don't extend credit to people who have a poor credit rating. You offer credit to people with marginal or poor credit ratings, but you require a higher down payment or shorter repayment period than is ordinarily required for creditworthy people. You offer credit to high-risk customers, but once all the fine print is deciphered, the true cost of credit you charge exceeds the average charged by others in your retail market. You offer credit to high-risk customers at favorable terms but employ draconian (although legal) collection practices against buyers who fall behind. If you advertise specific credit terms, you must provide all relevant details, including the down payment, the terms of repayment, and the annual interest rate.