Is Your Ad Clear and Conspicuous? Apparently it Depends.

Hudson Cook, LLP

We’ve all heard the jokes about fine print before – the text is so small you could be agreeing to give the dealership your first-born child. However, for regulators the fine print is no laughing matter. The bottom line is that both state and federal regulators expect the disclosures in the fine print to be clear and conspicuous.

But, what does the term “clear and conspicuous” mean? The FTC has provided copious amounts of guidance regarding the standard throughout the years. A critical factor in assessing whether fine print, or any other disclosure, is clear and conspicuous is the medium used to convey the advertisement. Regulators have different expectations regarding disclosures in print advertisements versus disclosures in radio advertisements versus disclosures in television advertisements. Here are a few considerations to keep in mind when creating your dealership’s next advertisement...

Originally published in Tennessee Dealer News - Summer 2020.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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