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Can I advertise my products or services without violating truth-in-advertising laws in Kentucky? What are the requirements?

Advertising Requirements in Kentucky

To advertise products or services in Kentucky, you must comply with the state’s truth-in-advertising laws [2.1]. These laws prohibit intentionally false, misleading, or deceptive advertising. Violations of these laws can result in civil penalties of up to $2,000 per violation [4.4].

Truthful and Non-Misleading Advertising

To avoid violating these laws, you should ensure that your advertisements are truthful and not misleading. If you are advertising real estate, you must include the name of the real estate company listed on your license or the name of the principal broker with whom you are affiliated in all advertisements of the listed property [2.1].

If you are offering a business opportunity, you must register with the Division of Consumer Protection and provide a detailed description of the services you will perform for the consumer/investor [4.5].

If you are advertising to increase the consumption of property or services, you must not make false or misleading statements in any advertisement addressed to the public or to a substantial number of persons [1.1].

Bait Advertising

Bait advertising is prohibited in Kentucky. Bait advertising is when a person offers to the public or a substantial number of persons property or services as part of a scheme or plan with the intent not to sell or provide the advertised property or services at the price at which they offered them, in a quantity sufficient to meet the reasonably expected public demand, or at all [1.2]. Bait advertising is a Class A misdemeanor.

Advertising Property Located Outside Kentucky

If you are promoting sales in Kentucky of property located outside the state, you must first apply to the commission for its approval before doing so and comply with administrative regulations, restrictions, and conditions the commission may impose as well as those provisions set forth in this chapter [2.2].

Denial of Privilege to Advertise Certification

The privilege of the corporation to advertise to the public that it is under the supervision of the Department of Financial Institutions may be denied by the commissioner at any time the commissioner has reason to believe there is a violation of any of the provisions of KRS 286.7-410 to 286.7-600 or any rule or regulations promulgated thereunder [3.1].

Other Advertising Regulations

  • A person using electronic equipment within Kentucky for purposes of telephone solicitation shall be deemed to have accepted the provisions of KRS 367.46951 to 367.46999 and of KRS Chapter 526 [4.2].
  • A copy of the application for a license to conduct a sale under KRS 365.410 to 365.480 and 365.992, including the inventory filed herewith, shall be posted in a conspicuous place in the sales room or place where the inventoried goods are to be sold, so that the public may be informed of the facts relating to the goods before purchasing same [5.1].
  • No seller or transferor of any goods, wares or merchandise shall advertise, claim or imply that any sale or other transfer of goods, wares or merchandise is a sale or transfer at wholesale or at a wholesale price unless the sale or transfer is made to a transferee for resale and unless the transferee has a seller’s permit to do business pursuant to KRS 139.240 [5.2].
  • Certain solicitations are exempt from the provisions of KRS 367.650 to 367.670, such as solicitations by an organization of contributions from its members and their families only, solicitations by a religious organization for funds for religious purposes, and solicitations by a publicly-owned or nonprofit privately-endowed educational institution regulated by the Kentucky Board of Education [4.3].

In summary, to advertise products or services in Kentucky, you must ensure that your advertisements are truthful and not misleading, comply with real estate advertising regulations if applicable, and register with the Division of Consumer Protection if offering a business opportunity. Bait advertising is prohibited, and there are additional regulations for promoting sales of property located outside Kentucky and for certain types of advertising.

[1.1]: KYRS 517.030 [1.2]: KYRS 517.040 [2.1]: KYRS 324.117 [2.2]: KYRS 324.142 [3.1]: KYRS 286.7-590 [4.2]: KYRS 367.46987 [5.1]: KYRS 365.455 [5.2]: KYRS 365.495 [4.3]: KYRS 367.660 [4.4]: KYRS 367.638 [4.5]: KYRS 367.805

Source(s):
Jurisdiction

Kentucky