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One important section of the Federal Trade Commission Act isDeceptive Advertising. This law prohibits companies from making false or misleading claims about their products or services. A well-known example is theVolkswagen "Clean Diesel" scandal, where the company falsely advertised certain vehicles as environmentally friendly while using software to cheat emissions tests. The FTC ruled that Volkswagen's claims were deceptive, resulting in billions of dollars in fines, consumer refunds, and legal settlements. This case underscores the importance of truthful advertising and highlights how violating FTC regulations can lead to devastating financial and reputational consequences for businesses.