The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers.In this module we'll learn about how the federal government has responded to false advertising and marketing to protect American consumers. Proof of Actual Deception or Intent Not Required. • "possess a tendency to deceive" in the eyes of the FTC. Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. Similarly, marketing ethics consultant, John Smith, advises consumers to "become active participants, not passive recipients, in the marketing process. False Advertising Lawsuit for Deceptive Marketing Practices. Misleading information can have a harmful effect. This is why the Competition Act prohibits deceptive marketing practices.