What laws govern product labeling and advertising claims?
Product labeling and advertising claims in North Carolina are governed primarily by two sets of regulations—federal regulations and state regulations. At the federal level, the Federal Trade Commission (FTC) prescribes general rules for labeling and advertising claims. Under the FTC’s guidelines, product labels must accurately and completely reveal all the necessary information about the product, and all claims made by the manufacturer should be supported by reliable scientific evidence. Furthermore, advertisements should be clear and conspicuous and not contain any deceptive, misleading, or unfair claims. At the state level, the North Carolina Attorney General’s Office (NCAGO) enforces the North Carolina Unfair and Deceptive Trade Practices Act (NCUDTPA). This law prohibits false or misleading statements, omissions, promises, or representations about a product or service. Under this law, advertisers may be held liable if they fail to disclose material facts, or make claims that they cannot support with reliable evidence. To ensure compliance with both federal and state laws, North Carolina businesses should be familiar with the requirements of both and should work closely with legal counsel to ensure proper labeling and advertising. By doing so, businesses can avoid potential fines or other consequences and foster trust with their customers.
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