Sears formulated a plan to increase sales of its top-of-the-line Lady Kenmore brand dishwasher; it sought to
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After a thorough investigation, the Federal Trade Commission (FTC), filed a complaint against Sears, alleging that the advertisements were false and misleading. The final FTC order required Sears to stop making the no prescraping, no prerinsing claim. The order also prevented Sears from (1) Making any ‘‘performance claims’’ for ‘‘major home appliances’’ without first establishing a reasonable basis consisting of substantiating tests or other evidence; (2) Misrepresenting any test, survey, or demonstration regarding ‘‘major home appliances’’; and (3) Making any advertising statements not consistent with statements in post purchase materials supplied to purchasers of ‘‘major home appliances.’’ Sears contends the order is too broad, as it covers appliances other than dishwashers and includes ‘‘performance claims’’ as well. Explain whether Sears is correct.
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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