Which of these statements is TRUE regarding truth in advertising violation penalties?

The statement that the Federal Trade Commission determines the severity based on the violation's severity is correct. The FTC plays a crucial role in enforcing truth-in-advertising laws and evaluates violations on a case-by-case basis. When assessing a violation, the FTC considers several factors, including the nature of the misleading information, the potential harm to consumers, and whether the violation is part of a broader pattern of deceptive practices. This flexible approach allows the FTC to impose appropriate penalties that reflect the specific circumstances of each case, ensuring that the enforcement of truth-in-advertising laws is effectively tailored to discourage dishonest marketing practices.