![]() if there is not intent to conceal fraudĦ. Although companies may disclose a few significant events, if they occur between annual reports, corporations may withhold much info. before share are offered and while they are being tradedĥ. Security laws require stock companies to disclose financial info. The Securities Act of 1933 requires disclosures in connection w/ registering securities for saleĤ. about securities that are bought and sold on the stock exchangeģ. Security statutes mandate disclosure of financial info. Corporations are required to report financial information every quarter, but if something big happens that affects the company's financial status, they have to disclose it within 15 days.Ģ. Cease-and-Desist order becomes final after all appeals or after time runs out to make appealġ. The agency has the burden to establish substantial evidence that the advertiser has violated the lawġ1. Once issued the case is assigned to an FTC administrative law judge who conducts a hearing much like a trialġ0. When the FTC issues a complaint against the advertiser an investigation proceeds to adjudicationĩ. Once the formal complaint is issued the advertisers loses the opportunity to sign a consent orderĨ. ![]() If the ad is a concern of public health and must be halted immediately, the court may issue an injunctionħ. If consent cannot be reached, the FTC may issue a formal cease-and-desist order. The commission then notifies the party of the proposed complaint and asks whether the party would sign a consent order agreeing to discontinue the deceptive practice called a consent decree (90% cases are settled this way)ĥ. If the investigation reveals that corrective action may be necessary, a proposed complaint may be submitted to the commissionĤ. If it appears that ads are deceptive, the staff conducts an investigationģ. A citizen or competitor sends a letter to the FTC complaining about an advertising practice (commission staff may also originate an inquiry directly)Ģ.
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