Answer to Question 1
True
Answer to Question 2
While any instance of a possibly unethical advertising message can always be debated, the law is quite clear about deception, but it is much more vague regarding unfairness.
An ad is considered deceptive if the following three elements are present, based on the FTC's ruling: if it involves a representation,omission, or practice that may mislead the consumer; if this representation, omission, or practice is judged from the perspective of a consumer acting reasonably; and if the representation, omission, or practice is a material one that would affect the consumer's conduct or decision making about the advertised product or service. Very broadly, deception is defined as the presence of false or misleading statements in an advertisement.
An ad is considered unfair based on 1990s legislation that says it needs to cause substantial injury to consumers that is not avoidable by consumers, and is not outweighed by benefits to consumers or competitors. This allows the FTC to assess both the benefits and costs of advertising, and it rules out reckless behaviors on the part of consumers, before a ruling can be made calling an ad unfair.
An ad includes puffery when superlatives or exaggerations are used that most reasonable people would understand as harmless claims or slogans. While such claims may not be technically true (World's Best Coffee), they are totally legal and are not considered to be either deceptive or unfair.
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