Stuart Rabner, Attorney General
 
Division of Consumer Affairs
Stephen B. Nolan, Acting Director
 
For Immediate Release:
September 27, 2006
For Further Information Contact:
Kara Wood 973-504-6327
Consumer Information:
973-504-6200

 

NEW JERSEY JOINS FTC IN WARNING ABOUT DECEPTIVE ADS
THAT TARGET HISPANICS

NEWARK - More than 160 advertisers and 77 media outlets are using advertisements that are potentially deceptive to Hispanic audiences, according to the results of a one-day nationwide surf of Spanish-language advertisements, Attorney General Stuart Rabner and Acting Consumer Affairs Director Stephen B. Nolan announced today. New Jersey joined the Federal Trade Commission (FTC) and 59 other groups in a one-day surf last April of Spanish-language newspaper, magazine, Internet, radio and television advertisements.

“We will not tolerate false advertising and, when appropriate, we will use our strong Consumer Fraud Act to its fullest to protect our citizens,” said Attorney General Rabner.

Nolan said the one day survey found numerous ads targeting New Jersey’s Hispanic community were filled with misleading information or raised false hopes on issues ranging from diseases to weight loss to investment opportunities.

Surf Day was on April 19. Individuals across the United States and in five Latin American countries participated. Those involved focused on identifying potentially deceptive ads aimed at Hispanics in three areas: health, credit and business opportunities. Ten Division of Consumer Affairs’ employees combed through 20 newspapers and searched the Internet, finding 67 suspect web site advertisements and 51 suspect newspaper advertisements. The results were forwarded to the FTC for review.

Of the potentially deceptive ads found by participants during the surf, over half were health-related and made claims for weight loss products and “disease cures.” The ads claimed treatments and cures for serious diseases, most often diabetes and cancer. More than half of the weight loss ads contained false “red flag” claims that cannot be supported, according to the FTC.

Work-at-home and business opportunity ads with questionable claims represented the second most common type of ads found during the surf. Some advertised get rich quick schemes for at-home craft assembly and envelope stuffing. Many made extravagant earnings’ claims that the FTC has found few, if any, consumers ever achieve. Participants also found credit-related ads offering credit repair and guaranteed credit, among other services.

The New Jersey Consumer Affairs’ employees were among 167 individuals who took part in the surf, including staff at the Food and Drug Administration, the United States Postal Inspection Service, and Better Business Bureaus, as well as Attorneys General offices, state and local consumer protection agencies, community-based groups and university students. Consumer protection agencies in Colombia, Costa Rica, Mexico, Nicaragua and Panama also took part in the effort.

The FTC sent letters to 166 advertisers informing them that their ad claims may be in violation of the law, and urged them to review their advertising and promotional materials. The letters also strongly recommend that they review business and consumer education materials on the FTC’s website to learn more about relevant laws and requirements. The letters to 77 media outlets advise them that they are running potentially deceptive advertising and offers advice to assist them in screening out advertisements that contain questionable claims.

In addition to the letters, the FTC forwarded Internet ads to 10 international law enforcement partners. Those agencies can review the ads, which originated in their country, and take action as appropriate. The surf also provided law enforcement targets for several cases announced today by the FTC at the Hispanic Law Enforcement Forum in New York City.

For further information about the surf, a sample FTC warning letter and a list of participants, please visit the FTC’s Web site at www.ftc.gov.

New Jersey consumers with any complaints on misleading or false advertising, or any other consumer matter, are encouraged to contact the Division of Consumer Affairs toll-free in New Jersey at 800-242-5846 or 973-504-2600, or on line at www.njconsumeraffairs.gov.

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