Cigarette Rule

Cigarette Rule

Definition

Now obsolete standard adopted by the Federal Trade Commission in 1964 for determining whether a trade practice was unfair. Three factors were considered: (1) whether the practice offended public policy as established by statutes, the common law, or otherwise; (2) whether the practice was immoral, unethical, oppressive, or unscrupulous; and (3) whether the practice caused substantial injury to consumers.

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