Question

An owner of a small investment company advertised and sold properties for a commission. In his ads he did not indicate that he was a licensee and in fact he was not. He also made false statements in his advertising. Since he failed to disclose the material facts, who would prosecute this person?

Answer 1

The owner of the small investment company may be prosecuted for fraud if he failed to disclose that he was not a licensee and made false statements in his advertising. The FTC checks factual claims made in advertising to ensure they are truthful and not misleading.

Step-by-step explanation:

If the owner of the small investment company advertised and sold properties without indicating that he was a licensee and made false statements in his advertising, he may be prosecuted for fraud. In commercial transactions, it is illegal to make false or misleading statements. The Federal Trade Commission (FTC) often checks factual claims made in advertising to ensure they are truthful and not misleading.