Bill: Draft Truth in Advertising Act

[xSyncx]

A
BILL
To
Prohibit misleading advertising​

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the ‘Truth in Advertising Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by Representative xSyncx.
(4) This Act has been co-sponsored by Representative AsexualDinosaur.

2 - Reasons
(1) There are currently no laws directly prohibiting false and misleading advertising
(2) Recently, there have been a handful of firms misleading clients in the quality and capability of their services. The most notable recent example is HOME Investment who attracted clients with “low risk” and “loss-proof” investment, while being in private equity (extremely risky).

3 - Definitions
(1) False Advertising: When an advertiser intentionally or recklessly includes untrue statements that are intended to be taken as factual.
(2) Misleading Advertising: When an advertiser intentionally or recklessly includes information that is true, but is presented in a way that may confuse or mislead consumers. This includes:
(a) Omitting crucial information
(b) Using ambiguous language
(3) Advertising Puffery: Vague, wildly exaggerated claims that no reasonable person would take seriously. For example, “the best restaurant in the world”.

4 - Prohibition Exemptions
The following terms are exempt from the definitions of false & misleading advertising.
(1) Advertising Puffery

5 - Fines
(1) False Advertising
(i) Classification: Indictable Criminal Offence
When an individual, or in the case of a commercial advertisement, the person(s) responsible for its authorisation, engages in false advertising.
Minimum Sentencing: $200 Fine
Maximum Sentencing: $20000 Fine

(2) Misleading Advertising
(i) Classification: Indictable Criminal Offence
When an individual, or in the case of a commercial advertisement, the person(s) responsible for its authorisation, engages in misleading advertising.
Minimum Sentencing: $200 Fine
Maximum Sentencing: $20000 Fine