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Wheeler - Lea Act

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on 11 February 2016

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Transcript of Wheeler - Lea Act

Purpose
This Act tries to diminish false and misleading advertising.
States that these unfair trading acts are illegal.
This act was enacted in 1938.
Example
A local fashion designer puts signs up all over the trunk shows of her competitors saying that they have canceled to drive away their customers.
(a trunk show is a sales event for showing fashion merchandise to select customers)
What does the act ban?
false advertising
not labeling cigarette packages
lying about the effects of certain products.
What does it promote?
-Fair competition
-Decrease in monopolies
-Business ethics
- Doesn't trick the customer
Wheeler - Lea Act
By Jess, Jackson, and Morgan
Court Case: FTC v Jantzen
- In 1967, Jantzen, a manufacturing company for men's, women's, and children's apparel,was charged by allowing discriminatory advertising and promotional allowances to certain customers.
- This is violating the Wheeler - Lea Act.
- Violated a patent on shirt making that had already been made by another company.
- Had a letter from the original company that they needed to change way of manufacturing shirts but Jantzen ignored the complaint.
Full transcript