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In rare cases, the Government has required corrective advertising, to offset what officials have seen as inaccurate information in prior advertisements.
Iowa wants Kellogg to change existing ads as well as "undertake corrective advertising" and seeks to fine the company $40,000 for each violation.
It asked the F.T.C. to halt the claims, fine the company and require it to run corrective advertising.
The corporation chose the former; the agency fined it $500,000 and instructed it to spend a further $200,000 in corrective advertising.
Iowa has countersued, seeking corrective advertising for the claims and asking the court to fine Kellogg $40,000 for each time it has made such claims.
Lawrence Kurlander, an American Express spokesman in New York, said, "We've had to do this corrective advertising because of their egregious conduct."
Corrective advertising may be mandated, But there are no fines or prison time except for the infrequent instances when an advertiser refuses to stop despite being ordered to do so.
The prospecus, claimed Truth About Motorways, was misleading with regard to the number of cars that would use the road and sought an order compelling the publication of corrective advertising.
A new settlement that continues the ban on three-wheel all-terrain vehicles and calls for more than $8 million in corrective advertising was disclosed Monday by the Consumer Product Safety Commission.
Cease deceptive advertising of the products as formaldehyde-free and safe; engage in substantial corrective advertising, including honest communications to sales staff regarding product risks; and change numerous aspects of Brazilian Blowout's web site content.
The Working Group has called on Health Canada to force Berlex to stop the campaign, to apply strict fines and require that they issue corrective advertising to address the misinformation that has been perpetuated with this campaign.