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ADLAW: Report Warns Businesses to Heed New Laws

Jan 06 1999: The annual ADLAW predictions from Hall Dickler Kent Friedman & Wood LLP, a law firm specialising in advertising and marketing, warn that aspiring Internet entrepreneurs operating in the US should not overlook local legislation on both advertising and marketing this coming year.

According to the report, the Federal Trade Commission are poised to implement stringent laws under the Children's Online Privacy Protection Act and these laws are likely to adversely affect direct marketers operating on the Internet.

In an interview with Internetnews, Douglas J. Wood, an executive partner with ADLAW, commented, "Everything from violating use of words like "new", "sale" or "guarantee" to more serious problems such as "failing to deliver within 30 days" is under fire".

The report concludes that online advertisers and marketers are going to have to tread very carefully when negotiating new legislation from the FTC; "Would-be Internet millionaires will be exposed to potentially crushing fines and regulatory scrutiny."

Meanwhile, the report predicts that in 2000 when Sweden takes presidency of the European Union, advertising and marketing aimed at children could be banned outright. Sweden has traditionally opposed advertisements aimed at children and has drawn up a draft proposal to have it banned.

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