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
- What is a DeedWhat is a Deed and Why is it Important A deed is a legally binding document and if you own real property, it is an essential part of an estate… Read more: What is a Deed
- What is Intestate Succession?What is Intestate Succession? When you die without a valid will, the law—not you—decides who gets your property. That process is called intestate succession. Many people assume their “closest” loved… Read more: What is Intestate Succession?
- What is Probate?What is Probate? Probate is one of those legal processes most people have heard of but hope they never have to deal with. Yet, for many families—especially in California—it becomes… Read more: What is Probate?
- What is an Agent for Healthcare and Finance?What is an Agent? Choosing the right agent—also known as an attorney‑in‑fact—is one of the most important decisions you will make in your estate planning process. An agent is the… Read more: What is an Agent for Healthcare and Finance?
- IncapacityIncapacity. What It Is, Why It Matters, and How to Protect Yourself Before It Happens Incapacity is one of the most disruptive events a person can face; yet, it is… Read more: Incapacity