What are the laws that govern advertising, endorsements and reviews in e-commerce?
In Texas, the laws that govern advertising, endorsements, and reviews in e-commerce are largely the same as in other states. From a business perspective, businesses must adhere to the Texas Business and Commerce Code for requirements related to advertising and endorsements. Specifically, the code prohibits businesses from false, deceptive, and misleading advertising, prohibits endorsements from being misleading or deceptive, and requires businesses to disclose any material connections between the endorser and the product or service that is being endorsed. For reviews, the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) requires businesses to provide any material facts that may impact a customer’s decision to purchase a product or service. The law also prohibits businesses from misrepresenting the views of a customer or user, thereby prohibiting businesses from manipulating or fabricating reviews. Furthermore, the law requires businesses to clearly and conspicuously disclose any material connections between the customer or user and the product or service being reviewed. Lastly, businesses must also be aware of any other applicable federal laws, such as the Federal Trade Commission Act, which requires all advertising materials to be truthful and non-deceptive. Businesses that do not comply with these laws may face fines, penalties, or other civil or criminal liability. Therefore, it is important for businesses to be aware of and adhere to the various laws that govern advertising, endorsements, and reviews in e-commerce.
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