Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in Advertising, Marketing, and Sales practices. What actions can the FTC take against Chuck's?
The Federal Trade Commission (FTC) can investigate the problem, and if, after the investigation, it believes that Chuck's has engaged in Advertising, Marketing, and Sales, it can send a formal complaint to the alleged offender. Chuck's may agree to a settlement. If not, the FTC can conduct a hearing before an administrative law judge (ALJ). If the FTC succeeds in proving that Chuck's ads are deceptive, it can issue a cease-and-desist order requiring the advertising to stop. It might also impose a counter-advertising sanction, requiring Chuck's to issue new ads-in print, on radio, and on television-to inform the public about the earlier misinformation.
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