According to the Federal Trade Commission (FTC) guidelines for the advertising of warranties and guarantees, any advertisement that mentions a warranty or guarantee must contain certain required statements or explanations.
Advertisements for consumer products priced above $15.00 must contain a statement “with the clarity and prominence as will be noticed and understood by prospective purchasers” that the consumer can review a written copy of the guarantee or warranty prior to purchase, and where such copy can be obtained.
The FTC Guides for the Advertising of Warranties and Guarantees do not specify any type size or locations for the required statements in print advertisements. In television commercials, the statement should be given simultaneously or immediately after the mention of the warranty. It can be either in the audio portion of the commercial or in a super of at least five seconds’ duration.
Advertisements that mention a guarantee must also specify whether the guarantee is full or limited. A “full” guarantee is one with no restrictions. Most guarantees are “limited,” although in common usage, they seem to be unlimited. It is recommended that any material limitation or condition placed on the guarantee be clearly disclosed in order to avoid problems with federal and state regulators.
There are additional requirements relating to guaranteed satisfaction and lifetime guarantees and similar types of representations. Any time you have an advertisement featuring a guarantee, carefully review the federal and state guidelines to ensure your advertising is in compliance.
