Browse the listings of your competitors on any marketplace and you might find references to specific celebrities, products named after popular music groups, or claims that a beauty product will heal your skin woes. The fact that these kind of details are so commonly seen in product listings makes it seem like a genius idea—who wouldn’t want to associate a pair of killer heels with an A-list star who wore something similar, or talk about the curative powers of a face cream you’re selling? The problem is these examples are potential legal minefields.
We’ve prepared an introduction to some of the most common disclosures, claims and other legal concerns that online sellers might come across in their product listing copy. Use this as a brief introduction and caution when it comes to your wording, and continue to investigate compliance requirements for your specific category or industry—this list is meant as a primer and is far from all-inclusive.
RULES OF THUMB AT A GLANCE:
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Provide important product details (including product material/fabric content, country of origin and product care) in every listing.
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Be careful & detailed in disclosing content of products containing real or faux animal components and follow legal requirements in doing so.
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Don’t make any claims that you can’t back up with qualified information.
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Use only names, terms and words that don’t infringe on the rights of other entities.
RULE OF THUMB
PROVIDE IMPORTANT PRODUCT DETAILS UP FRONT
Commonly applies to sellers of: clothing, footwear, accessories, home goods
Consequences: possible fines
The FTC mandates that certain information appear on products like clothing, soft home goods and more. This information should also be conveyed on your e-commerce listings. Not only does it provide the customer with valuable details that can help them decide to purchase, but it also is a best practice to help protect you against possible fines and litigation.
In general, try to cover your bases and at a minimum, provide complete fabric content (down to the percentage of each fiber), country of origin and product care for every item you list.
Explore the full FTC guidelines to confirm details & whether it applies to your product.
RULE OF THUMB
FULLY DISCLOSE FAUX OR REAL FUR, WOOL AND FEATHER CONTENT
Commonly applies to sellers of: clothing, footwear, accessories, home goods
Consequences: possible penalties, false advertising lawsuits
Fur is a contentious subject and it pays to be diligent about disclosing everything possible. Some animal rights organizations have been known to order products that make faux fur claims and then sue the seller if they find there’s any real fur in them. This problem is more common than you might think. In 2008, Neiman Marcus paid a $25,000 fine for mislabeling what turned out to be real fur as faux fur. Other major department stores, including Macy’s, Lord & Taylor and Bloomingdale’s, had the same mislabeling issue and settled a suit for false advertising.
Do your due diligence and list out entire fabric content of faux fur and comply with the FTC’s laws regarding disclosure of real fur.
Read the FTC’s Fur Product Labeling compliance tips here
Find details on wool and feather disclosure here
RULE OF THUMB
DON’T MAKE CLAIMS YOU CAN’T BACK UP
Commonly applies to sellers of: household goods, clothing, beauty, health and wellness goods
Consequences: possible penalties, false advertising lawsuits
Legally hazardous claim examples can run the gamut and from green/environmental to health claims. If you use words like antimicrobial or sustainable in your product listings, be sure you can back those up. In the beauty industry, products must be classified as drugs with the FDA in order to make claims about treating conditions or changing the structure or function of the skin and body. Many cosmetic products do not undergo the expensive, rigorous process of qualifying as a drug, and therefore should avoid words like ‘treat,’ ‘heal,’ ‘cure,’ ‘repair’ and ‘prevent’ to help avoid legal complications. You can actually read real warning letters the FDA has sent to beauty companies with examples of improper claims—this is a great way to get familiar with some definite don’ts.
Check out more information on qualifying claims here
Brush up on the FTC’s take on environmental claims
Some case studies & insight on antimicrobial claims here
More on beauty vs drug claims per the FDA
RULE OF THUMB
USE ONLY NAMES AND TERMS YOU HAVE PERMISSION TO USE
Commonly applies to sellers of: any category
Consequences: possible fines and a variety of lawsuits
Take care when crafting your listings and product names and be sure not to accidentally (or intentionally) mention celebrities, musicians, copyrighted or trademarked work and intellectual property. Using a non-approved name or likeness (especially a celebrity with above-average litigation power) may quickly earn you a cease and desist, if not a lawsuit. Here’s another example—a few years ago, Urban Outfitters settled a lawsuit regarding their appropriation of a trademarked Native American tribe name in a collection and product naming. The takeaway: If in doubt, find another way to describe your product—it’s often as easy as finding a more general synonym. In the case of Urban Outfitters, opting for the general “tribal print” instead of being so specific could’ve saved them a lot of cash.