When does advertising become illegal? What is false advertising?
Here is an overview of false advertising, what it is, when is it considered deceptive, and what regulations protect consumers.
Businesses employ advertising tactics to entice consumers into purchasing their products or services, but when they employ false advertising, they may be putting themselves at legal risk.
What is false advertising?
False advertising occurs when a business makes a false or misleading claim about a product or service. Claims that deceive and harm consumers or other businesses are usually prohibited by state and federal laws.
When is an advertisement for a product or service considered deceptive?
- When it has hidden fees.
- Offering guarantees or warranties to consumers but then refusing to provide relief.
- Making misleading comparisons about a competitor’s product.
- When prices are inflated despite being advertised as being liquidated.
- When it’s described as having benefits that it does not possess.
- When it’s advertised as being of a higher quality than it is.
- When it makes false claims about having medical or scientific support.
- When it misleads customers into believing they are receiving a different quantity or amount than they actually are receiving.
Laws regulating false advertising differ on a state by state basis. Some states have stricter laws than others. Victims of false advertising may be about to seek civil as well as criminal damages. The Federal Trade Commission has a portal to allow consumers to submit a consumer complaint. Businesses who make false or misleading advertisements are at risk for facing class-action lawsuits.
What is the benefit of a class action lawsuit to consumers? Victims who suffered similarly as a result of false advertising can band together to file a class-action lawsuit in order to obtain restitution when they may otherwise receive nothing because they couldn’t afford to go after a large company in court on their own. They may have a higher chance of holding a large company liable for their duplicity.
Have you been harmed by false advertising? Send us a message or fill out our free evaluation below to learn more about your rights.
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