UPDATE: FTC Requires Truth in Online Advertising

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Internet advertisers are subject to the same trade regulations and laws that apply to traditional advertisers, the Federal Trade Commission said last week. According to the commission's report called "Dot-Com Disclosures: Information about Online Advertising," the basic principles of lawful advertisements are that ads must be truthful, fair and not misleading and companies must have evidence to back their assertions. Last month, the FTC required three "medical" Web sites to repay consumers who had purchased products that were advertised as cures for everything from cancer to AIDS.

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