Are you guilty of false advertising?
Do you own a business? Do you advertise on the internet, on the radio, television, or in print?
If so, are you telling the truth about your products and/or services? If not, BEWARE! A competitor or a consumer can possibly sue you for making false and misleading statements about your wares. And, not only can you be sued in state court for making false and misleading statements about your products and services, but you can be dragged into federal court, too. Think I’m lying? Think again!
What is False Advertising?
The general rule of law advertising law under the Lanham Act provides that, to establish a claim for false advertisement, a plaintiff (the one filing the lawsuit) must show that the statement is false, either by proving that the advertising is “literally false”, or that if even the statement is literally true, that customers are likely to be confused or deceived.
In a 2009 case, Enfamil, the maker of baby formula, was found liable for false advertising, when it sent out mailers claiming that the generic store-brand formulas were nutritionally inferior. A federal court found that Enfamil crossed the line. It never ends well when companies try to exaggerate the benefit of their products or stretch the truth about their competitors.
While companies like Red Bull have offered a large payout ($13 million) to damaged consumers, the FTC can also issue fines when it deems it necessary. In fact, the largest fine ($2 million) in relation to false advertising occurred in late 2018, when the FTC fined Marketing Architects, a firm in Main, for misleading advertising regarding a weight loss product.
Key takeaways:
1. Be truthful when talking about your products/services.
2. Avoid bad-mouthing your competitors.
3. Avoid intentionally trying to confuse your customers about the quality of your products/services.
4. Don’t make claims that can be scientifically proven wrong.
5. Be careful of what your tag line says – it could be misleading.
Until next time, I’m Attorney Francine Ward helping you protect YOU and YOUR Business! Join the conversation on www.facebook.com/Francineward!
If you’re ready to create or update your Estate Plan, schedule a consultation. If you’re still gathering information, feel free to join my Facebook community for ongoing guidance and support: Legal Insights Facebook Group.
Start here:
Estate Planning FAQs
Explore other core documents in a complete estate plan:
- Preparing for Estate Planning
- What Is a Trust
- What Is an Advance Healthcare Directive
- What Is a Durable Power of Attorney
- What Is a Will
Want to explore more topics?
View all Estate Planning articles
Connect with me:
🌐 Website |
📘 Facebook |
📸 Instagram |
💼 LinkedIn |
⭐ Yelp
fRANCINE d. wARD
- Trust Mill ScamsTrust Mill Scams. What’s Really Happening Behind the Scenes Trust Mill Scams. Estate planning scams are on the rise, especially in California. Seniors are losing an average of $34,000 per… Read more: Trust Mill Scams
- Missing Will – What if I Cannot Find it?Missing Will. A common occurrence after someone dies is that their estate documents cannot be found. The problem of the “missing will.” They may have been lost, mistakenly destroyed, intentionally… Read more: Missing Will – What if I Cannot Find it?
- How Much Does an Estate Plan Cost?How much does it cost? The cost of estate planning varies because every person and situation is different. No two individuals are the same and no two families have the… Read more: How Much Does an Estate Plan Cost?
- Trustee Powers. What Powers Should I Give to My Trustee?Trustee Powers. What does it mean? When you create a trust, one of the most important decisions you’ll make is what powers to give your trustee. A trustee can only… Read more: Trustee Powers. What Powers Should I Give to My Trustee?
- Updating a trust–what does it mean? Updating a Trust or Will: Can It Be Done? Clients often ask a simple but important question: “Can I change my trust?” The short answer is yes—often you can. But… Read more: Updating a trust–what does it mean?