How is the “should have known” in “Where any advertising agency makes or designs any advertisement that it knows or should have known to be misleading, it shall be jointly and severally liable with the principal of such advertisement for damages arising therefrom” set forth in Article 21 of the Fair Trade Act determined?

Home Service FAQsFalse or Misleading AdvertisingHow is the “should have known” in “Where any advertising agency makes or designs any advertisement that it knows or should have known to be misleading, it shall be jointly and severally liable with the principal of such advertisement for damages arising therefrom” set forth in Article 21 of the Fair Trade Act determined?

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10. How is the “should have known” in “Where any advertising agency makes or designs any advertisement that it knows or should have known to be misleading, it shall be jointly and severally liable with the principal of such advertisement for damages arising therefrom” set forth in Article 21 of the Fair Trade Act determined?

A10:

The “should have known” stated in Article 21 of the Fair Trade Act refers to situations in which an advertising agency or media operator can easily obtain knowledge about something as a result of its expertise if it just pays some attention.

Relevant article(s) of law: Fair Trade Act, Article 21

Updated at：2016-02-22 15:51:12

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