Truth in Advertising

The Australian Consumer Law prohibits misleading or deceptive conduct in trade or commerce, which includes advertising. Under their "consumer guarantees" section, they highlight that truthful products "will work and do as advertised" in order to comply with the law. 

Please note that while the law provides the overall framework on a national level, each state and territory may have its own fair trade agencies to enforce it. Check with the legal team if you're not sure.

The Consumer Defense Code (CDC) is a set of norms that regulates the business between consumers, products, and providers. The code states that protection against misleading or abusive advertising is a basic right of the consumer.

The CDC defines misleading advertising (III, Art.37,  §1º) as any type of information or communication of advertising nature, wholly or partially false, or, in any other way, even by omission, capable of misleading the consumer regarding the nature, characteristics, quality, quantity, properties, origin, price and any other data about products and services.

Aside from the governmental regulation, Brazil also has the National Council for Advertisement Self-Regulation (Conar), an independent body formed by media associations (TV, print, radio, internet, etc.). You can access the Conar Self-regulation Code in English here.

Using competitors' brands in ads is a big legal risk in Brazil. A recent court ruling in 2023 charged a company as guilty after a competitor complained their mark was being used by the offender in a Google Ads campaign. The court ruled it an "anti-competitive practice." The judge ruled that "the offender seeks to gain advantages, without much effort, by using the fame and prestige acquired by a certain brand or business name, associating their brand in some way with it", creating jurisprudence for similar cases.

The Consumer Protection from Unfair Trading Regulations in 2008 prohibits unfair commercial practices, which include misleading actions and omissions, as well as aggressive commercial practices. According to their prohibitions, unfair commercial practices are practices that impair a consumer's ability to make an informed decision. Likewise, something may be considered a misleading omission when there is insufficient information, or it is presented in an unclear, unintelligible, ambiguous, or untimely manner.

Advertisements in the UK must also comply with the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code), which applies to print and online/mobile media and calls for honesty and accuracy in advertisement. See the link here for information.

According to the Federal Trade Commission — which is an independent agency of the U.S. government that regulates unfair or deceptive commercial practices — claims made in ads, "must be truthful, cannot be deceptive or unfair, and must be evidence-based." 

The FTC has an entire section dedicated to online advertisements (link here), which emphasizes the need to portray products in a truthful light. Mobile game ads are under increasing scrutiny. In 2021, mobile game advertising company Tapjoy reached a settlement after the FTC filed a complaint about its ad campaigns that promised game rewards that players claimed were untruthful.

The Federal Trade Commission Act has been in practice for over 100 years, and legislation is evolving to this day.