Advertising Law in the United States and European Union

Nearly 40% of the more than $270 billion spent on advertising throughout the world occurs in the United States and more than 25% more is spent in Europe (Adler 1996). Both the United States and European Union (EU) have a central government that is the source of marketwide law, as well as numerous states, each with its own individual laws. Although the EU drew on U.S. law when drafting its 1984 Directive on Misleading Advertising, many of its member states have legal traditions predating those of the United States, and they are reluctant to change. The author examines advertising law in both the United States and EU, specifically exploring the law of misleading, comparison, and unfair advertising. Differences between states in each market, the states and central government, and the United States and EU are analyzed to develop implications for both marketers and policy makers.