Boston College Law Review
Volume 5 | Issue 3 Article 17
4-1-1964 Federal Regulation of False Advertising Judith L. Olans
John F. Dobbyn
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Recommended Citation Judith L. Olans & John F. Dobbyn, Federal Regulation of False Advertising, 5 B.C.L. Rev. 704 (1964), http://lawdigitalcommons.bc.edu/bclr/vol5/iss3/17
This Student Comments is brought to you for free and open access by the Law Journals at Digital Commons @ Boston College Law School. It has been accepted for inclusion in Boston College Law Review by an authorized editor of Digital Commons @ Boston College Law School. For more information, please contact [email protected]. E E A EGU A IO O A SE A E ISI G "0 what a tangled web we weave When first we practice to deceive." SIR WALTER SCOTT, M rM Ott THE DECLINE AND FALL OF CAVEAT EMPTOR The American economy is centered around the market place. Thus, it is dependent upon the adequacy with which the market performs its essen- tial function—providing the stage for the dialogue of buyers and sellers, the response to which will determine future economic schedules of production, consumption, savings and investment. Logically, it is only with full infor- mation regarding the qualities, amounts, and prices of the available products that such dialogue may be conducted intelligently. In a primitive barter system type of economy, where there is a face-to-face confrontation between buyer and seller, the buyer can question the seller about the qualities of the merchandise before deciding whether to buy it. But, as the economy has expanded, the seller has become an invisible partner to the "dialogue." The buyer is at a distinct disadvantage, for he is forced to rely on the distant seller's advertising claims in formulating his decision to pur- chase without an opportunity either to question the merits of the goods or the validity of the claims. Thus, with the complexities of our contemporary economic system, the danger of misleading information in advertising is greater than ever before, for false advertising can and will undercut the buyer's capability to judge his purchase. If today's "dialogue" is predicated upon false or inadequate disclosure, the resultant waste of economic re- sources will pervert the function of the market? Perfect performance of our economic system thus depends on the opportunity for all buyers and sellers to have equal access to the market with complete knowledge regarding its offers and requirements? With the parallel development of national markets and modern com- munications technology, advertising has indeed become the major method of feeding the necessary information to the buyer in the market place. Ad- vertising may be said to include all representations made by sellers or their agents to induce the purchase of a product or service—from disclosures in the popular mass communications media to the presentation of the product itself by way of trademarks and labelling? As such, advertising is a major