The Federal Trade Commission (FTC) and state attorneys general regulate how companies advertise the prices of their products. For those companies with a national reach, this complex web of federal and state rules can make it difficult to design a single, persuasive advertising campaign that does not trigger an investigation for deceptive pricing somewhere in the country.

Nevertheless, in my experience, some claims for deceptive pricing are entirely avoidable. Below, please find five tips to help companies avoid liability for deceptive pricing in advertising.

• Substantiate First, Advertise Second

Substantiation is the process of gathering extrinsic evidence to support all claims made in a proposed ad in the event of a government investigation or litigation. Advertisers are required to substantiate all claims (both express and implied) contained in an ad before its release, including pricing. For example, claims that a product or service that would ordinarily cost a consumer $250 if purchased from a competitor but is available from the advertiser for $199.99 requires the advertiser to be "reasonably certain that the higher price he advertises does not appreciably exceed the price at which substantial sales of the article are being made in the area." Under the principles of substantiation, an advertiser is responsible for all reasonable interpretations of its ad, including pricing. How much substantiation is needed depends on the nature of the claims made in the ad, but as a general rule, advertisers must have a "reasonable basis" for all representations made.

• Price Discounts Must Be Genuine

Everyone loves a deal. Companies are aware of this, which is why bargain advertising is so prevalent in advertising campaigns. Combined with suggestions to "act now" to take advantage of a "limited-time offer," this advertising technique can overcome the sensibilities of even the most sophisticated consumers fearful of having to pay more for a product or service later. The experience of buying a car has given rise to the perception that it is acceptable as a matter of course to advertise and compare the sales price to the higher "sticker price" at which the product or service is ordinarily available. However, before including such price comparisons, it is important for an advertiser to prove that the former price "is the actual, bona fide price at which the article was offered to the public on a regular basis for a reasonably substantial period of time." See 16 C.F.R. Section 233.1(a). Advertising a "sales price" that is actually the regular price at which a product is typically offered is a recipe for disaster. As a result, companies must carefully evaluate all advertised discounts for genuineness prior to advertising.

• Make Sure That "Free" Means Free

The use of the phrase "free" is not free from government regulation. In other words, special rules govern when it is permissible to advertise a product or service as free. For example, in a buy one/get one free campaign, the word "free" indicates that the consumer "is paying nothing for that article and no more than the regular price for the other." In this context, the phrase "regular price" means the price at which articles of the same quantity/quality have been "openly and actively" sold for a "reasonably substantial period of time" (typically 30 days) in the same geographic market or trade area.  "Free" offers must also be limited in duration and not maintained in perpetuity. For example, under FTC regulations, "a single size of a product or a single kind of service should not be advertised with a 'free' offer in a trade area for more than six months in any 12-month period."

• Do Not Over-Rely on Disclaimers

Advertisers cannot use disclaimers to cure an otherwise deceptive ad. Rather, the purpose of disclaimers, when used properly, is to condition the claims made in the main body of the ad to avoid creating a misleading impression. Advertisers should be particularly cautious when using disclaimers connected to price-point advertising (advertising a product or service for a specified price). Some states, like Pennsylvania, limit the use of disclaimers in price-point advertising for certain services, like automobile repair or maintenance services, by requiring the advertised price to include "charges of any type which are necessary or usual prior to delivery of the vehicle or service to the purchaser." In order to be valid, advertisers must display disclaimers in a "clear and conspicuous" manner.

• Monitor Consumer Complaints

Consumers use a multitude of methods to complain about the products and services they buy. The more traditional methods consist of complaints to the Better Business Bureau, the FTC, and the consumer protection bureaus of offices of attorneys general. In the internet age, complaints may materialize on social media sites maintained by the company and dedicated consumer websites like Yelp.com. Since all of these complaints are available to the government, it is important for companies who advertise to monitor and analyze complaints of deceptive pricing to head off an investigation before it begins.