It’s our 10th episode of ComplianceTalk! To mark the occasion, Michele and Chad step away from the usual roundup of new developments for a primer on UDAP: Unfair, Deceptive Acts or Practices. Rooted in Section 5 of the FTC Act, UDAP is one of the broadest tools regulators have, which is exactly why it touches nearly every part of a business that interacts with consumers, from marketing and advertising to sales and customer service.
At its core, the standard breaks into two parts. A claim is deceptive if it isn’t true, or if it can’t be substantiated with real evidence, no matter how simple or small the claim may seem. A practice is unfair if it causes consumer harm that couldn’t reasonably be avoided and isn’t outweighed by some offsetting benefit — a distinction we’ve broken down in more detail before. That flexibility is what makes UDAP so durable: it’s been on the books for decades, yet it still adapts to new products, new marketing channels, and new business models as they emerge, whether that’s “Made in USA” labeling, influencer endorsements, or the fine print behind a “free” offer.
This episode is meant to serve as a reference point to come back to as new UDAP issues arise in future episodes. Whether you’re new to compliance or just want a refresher on the fundamentals, this one lays the groundwork.
Resources mentioned in this episode:
