Five claims you can actually make in your ads
The FTC has clear rules about what you can promise customers. Here's what passes and what will get you in trouble.
You can make almost any claim in an ad, but only if you have proof. The Federal Trade Commission requires that before you run an advertisement, you must have what it calls a reasonable basis for what you say. That means objective evidence that backs up your claim. No proof, no claim. It's that simple, and it applies to every business.
Key facts
- An ad is deceptive if it contains a false statement or leaves out information that would matter to a customer's decision.
- Health and safety claims must be backed by scientific evidence that experts in the field would accept, not customer testimonials.
- A money-back guarantee does not substitute for proof that your claim is true.
- Advertising agencies can be held legally responsible for misleading claims, not just the business that runs the ad.
- Every state has its own consumer protection laws that govern ads running there.
Tip 1: Know the difference between fact and opinion
Opinion claims get a pass. If your salon ad says "Our haircuts look amazing," that's subjective. Customers can judge that for themselves, and the FTC doesn't scrutinize it. But if you say "Our haircuts last three weeks longer than competitors' haircuts," you need data to back that up. The line matters. Before you write any claim, ask yourself: Can a customer verify this by looking or trying it, or does it require proof?
Tip 2: Never use testimonials to prove health or safety claims
A satisfied customer saying your product cured their back pain is not evidence. The FTC will not accept it. If your roofing company wants to claim that your shingles are more durable, you need independent testing or industry-standard measurements, not a homeowner's letter. Testimonials are fine for taste and experience ("This restaurant has the best tacos"), but they fail for anything a customer cannot judge themselves.
Tip 3: Gather your proof before you write the ad
The level of proof you need depends on the claim. A simple claim like "We open at 8 a.m." needs almost no proof. A claim about how your product performs compared to others needs more. A health claim needs research and testing that people with expertise in your field would recognize as valid. Before you sit down with your designer or your ad person, collect the evidence you have. If you don't have it, change the claim or don't make it.
Tip 4: Understand that a guarantee is not proof
Offering a money-back guarantee sounds good and builds trust. But it does not count as evidence that your claim is true. You still need the underlying proof. A fence company that guarantees its work for ten years still needs to show why that guarantee is realistic. The guarantee is a promise about what you'll do if something goes wrong. The claim is about what your product does. They are separate.
Tip 5: Watch what you omit
An ad can be deceptive by leaving something out, not just by saying something false. If you advertise a service at a certain price but don't mention a mandatory fee, that's deceptive. If you claim a product works for a condition but don't mention a major limitation, that's deceptive. Before you finalize any ad, ask: Is there something a reasonable customer would want to know that I'm not telling them?
Tip 6: Know that your ad agency shares the liability
If your ad is misleading, the FTC can hold your advertising agency responsible as well as you. The agency has a legal duty to check the claims you're making. They cannot just take your word for it. This means you should be prepared to show them your proof, and they should ask for it. If they don't, that's a warning sign.
Tip 7: Check the FTC website before you launch
The FTC website includes information about enforcement actions and guidance on advertising. Search for your industry or product type to see what the agency has said about similar claims. This takes an hour and could save you thousands. You can also call the FTC's Division of Advertising Practices with specific questions about your ad. The agency cannot clear your ads in advance, but it can point you toward guidance that applies to your business.
What happens if you get it wrong
The FTC can require you to stop running the ad, pay a fine, or refund customers. In serious cases, it can seek civil penalties. Your state's consumer protection office can also take action. The best defense is simple: have your proof ready before you make the claim. Keep records of where your claims come from. If a competitor complains or a customer files a complaint, you'll have something to show.
Sources
They did the reporting. The writing and the opinions here are ours.
Questions people ask about this
Can I use customer reviews to prove my product works?
Customer reviews work for subjective claims like taste or appearance. They do not work for health, safety, or performance claims. Those require objective evidence like testing or scientific studies. A review saying "This pain reliever helped me" is not proof that it works better than competitors.
What counts as proof for an advertising claim?
It depends on the claim. For health or safety claims, you need research and testing that experts in your field would recognize as valid. For performance claims, you need objective data like test results or measurements. For subjective claims like taste, you need almost no proof because customers can judge for themselves.
Is a money-back guarantee enough to support a claim?
No. A guarantee is a promise about what you'll do if something goes wrong. It is not proof that your claim is true. You must have separate evidence that backs up what you say the product does.
Can the FTC clear my ads before I run them?
No. The FTC does not review ads in advance. But you can search the FTC website for enforcement actions and guidance about your industry or product type. You can also call the FTC's Division of Advertising Practices with specific questions about how to comply.
Who is responsible if my ad is misleading?
Both you and your advertising agency can be held legally responsible. The agency has a duty to check the claims you're making and cannot just take your word for it. If the ad is deceptive, the FTC can pursue both parties.
What makes an ad deceptive?
An ad is deceptive if it contains a false statement or leaves out important information that would matter to a customer's decision. The FTC looks at whether the ad is likely to mislead consumers acting reasonably under the circumstances.
This piece is about Advertising FAQ's: A Guide for Small Business, published by FTC. Go read the original; the opinions here are ours and the reporting is theirs.
