The Federal Trade Commission (FTC) ordered Warner-Lambert to cease-and-desist from advertising that its product, Listerine antiseptic mouthwash, prevents, cures, or alleviates the common cold and sore...

The Federal Trade Commission (FTC) ordered Warner-Lambert to cease-and-desist from advertising that its product, Listerine antiseptic mouthwash, prevents, cures, or alleviates the common cold and sore throats. The order further required Warner-Lambert to disclose in future advertisements that “[c]ontrary to prior advertising, Listerine will not help prevent colds or sore throats or lessen their severity.” Warner-Lambert contended that even if its past advertising claims were false, the corrective advertising portion of the order exceeded the FTC’s statutory power. The FTC claimed that corrective advertising was necessary in light of Warner-Lambert’s one hundred years of false claims and the resulting persistence of erroneous consumer beliefs. Explain whether the FTC is correct.