What is a common requirement for advertising according to consumer law?

Prepare for the New Zealand Consumer Law Exam. Enhance your knowledge with multiple choice questions, detailed explanations, and study resources. Get ready to ace your test!

A fundamental requirement for advertising under consumer law is that all claims made must be substantiated and truthful. This principle is rooted in the need to protect consumers from misleading and deceptive practices. When advertisers make assertions about their products or services, those claims must be backed by evidence. This helps consumers make informed decisions based on accurate information.

The rationale behind this requirement is to promote honesty and transparency in advertising, ensuring that consumers are not misled by false or exaggerated claims. Advertising that is truthful and substantiated fosters trust between consumers and businesses, and contributes to fair competition in the marketplace.

Employing well-known celebrities, while it may enhance an advertisement's engagement, does not address the necessity for truthfulness in claims. Similarly, creating catchy phrases or exaggerating capabilities can lead to misleading advertisements, which are often scrutinized under consumer law. The focus is primarily on ensuring that all representations made in advertising can be validated and are not deceptive.

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