New FTC chief challenges truth-in-advertising rules
Washington — The new chairman of the Federal Trade Commission said Monday he has strong reservations about an FTC program which for more than a decade has required advertisers to have proof to back up what they say.
At the same time the chairman, James Miller III, promised an unabated and probably accelerated attack on outright fraud and deception in advertising.
Since the early 1970s the FTC has demanded detailed information from advertisers of everything from dishwashers to tires in an effort to determine whether they could prove what they were telling consumers.
Mr. Miller claims the consumer ultimately pays for the program through higher product costs.