FTC Seeks Comments on Deceptive Marketing Research

The Federal Trade Commission (FTC) has announced that it is submitting to the Office of Management and Budget its intention to study consumer susceptibility to fraudulent and deceptive marketing. The commission plans to conduct an “economic laboratory experiment” with 250 subjects to better target its enforcement actions and consumer education initiatives, and to improve future fraud surveys. The study, which will be conducted by a George Mason University faculty member, was previously announced but failed to generate any public comments.

FTC plans to study whether ”several decision-making biases, such as impulsivity, over-optimism, and loss aversion, that can cause inaccurate assessments of the risks, costs, and benefits of various choices,” are related to consumers’ vulnerability to unfair and deceptive marketing claims. The commission will study the subjects’ assessment of potentially deceptive and non-deceptive advertisements and their ability to differentiate between seemingly fraudulent and legitimate advertisements. FTC requests public comments by July 8, 2010. See Federal Register, June 8, 2010.