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15 U.S.C. § 54False advertisements; penalties

submitted 112 years ago by ch. 311 to r/title-15-COMMERCE-AND-TRADE · 364 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law makes false advertising a crime under certain conditions. It applies when a falsely advertised product could harm health, or when the ad was meant to deceive. Penalties rise for repeat violations, and publishers are usually protected unless they hide who placed the ad.

(a) Imposition of penalties: This subsection makes certain false ads a crime. If a person, partnership, or corporation violates section 52(a), the rule against false ads for food, drugs, devices, or cosmetics, they can be criminally punished in two situations: if using the advertised product the way the ad describes (or the way people usually use it) could hurt someone's health, or if the false ad was made to defraud or mislead people. The punishment is a misdemeanor. For a first offense, the fine is up to $5,000, the prison term is up to six months, or both. If someone is convicted again after an earlier conviction under this same section, the punishment goes up: a fine of up to $10,000, up to one year in prison, or both. There's an exception for meat. Meat and meat food products that have been properly inspected, marked, and labeled under the Meat Inspection Act are conclusively presumed not injurious to health, as of the moment they leave the official inspected "establishments." That presumption can't be challenged. (b) Exception of advertising medium or agency: This subsection protects certain people from liability for simply carrying or spreading a false ad: publishers, radio-broadcast licensees, and other advertising media or agencies. The manufacturer, packer, distributor, or seller of the product itself is not protected by this exception. A publisher or broadcaster isn't liable under this section for spreading a false ad unless it refuses to give the Commission, on request, the name and U.S. address of the manufacturer, packer, distributor, seller, or advertising agency that caused it to run the ad. Likewise, an advertising agency isn't liable for causing a false ad to be spread unless it refuses to give the Commission the name and U.S. address of the manufacturer, packer, distributor, or seller who caused the agency to spread the ad.
the actual law source: uscode.house.gov ↗public domain
(a) Imposition of penalties

Any person, partnership, or corporation who violates any provision of section 52(a) of this title shall, if the use of the commodity advertised may be injurious to health because of results from such use under the conditions prescribed in the advertisement thereof, or under such conditions as are customary or usual, or if such violation is with intent to defraud or mislead, be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than $5,000 or by imprisonment for not more than six months, or by both such fine and imprisonment; except that if the conviction is for a violation committed after a first conviction of such person, partnership, or corporation, for any violation of such section, punishment shall be by a fine of not more than $10,000 or by imprisonment for not more than one year, or by both such fine and imprisonment: Provided, That for the purposes of this section meats and meat food products duly inspected, marked, and labeled in accordance with rules and regulations issued under the Meat Inspection Act [21 U.S.C. 601 et seq.] shall be conclusively presumed not injurious to health at the time the same leave official “establishments.”

(b) Exception of advertising medium or agency

No publisher, radio-broadcast licensee, or agency or medium for the dissemination of advertising, except the manufacturer, packer, distributor, or seller of the commodity to which the false advertisement relates, shall be liable under this section by reason of the dissemination by him of any false advertisement, unless he has refused, on the request of the Commission, to furnish the Commission the name and post-office address of the manufacturer, packer, distributor, seller, or advertising agency, residing in the United States, who caused him to disseminate such advertisement. No advertising agency shall be liable under this section by reason of the causing by it of the dissemination of any false advertisement, unless it has refused, on the request of the Commission, to furnish the Commission the name and post-office address of the manufacturer, packer, distributor, or seller, residing in the United States, who caused it to cause the dissemination of such advertisement.

Source credit: (Sept. 26, 1914, ch. 311, § 14, as added Mar. 21, 1938, ch. 49, § 4, 52 Stat. 114.)

history & why it existsrecord from the source credit
  • 1914Enacted · Act of Sept. 26, 1914, ch. 311 · 52 Stat. 114

A history note hasn’t been published yet. The record shows enactment by ch. 311 on 1914-09-26.

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