What is misleading advertising?
Misleading advertising, also known as false advertising, is an act of advertisement or promotion of products or services in a misleading, deceptive, or untrue manner.
Which agencies enforce false advertising laws?
In the United States, the main agency that enforces laws on false advertising is the FTC, with state attorneys general and private parties also playing significant roles.
What is false or misleading advertising?
Any claim that is not true or that misleads the consumer about the nature, quality, price, or other attributes of a product or service.
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Is puffery false advertising?
Puffery is exaggerated or subjective language (such as “the best in the world”) that is not usually considered false advertising because it is not meant to be taken literally.
Can false advertising be both intentional and unintentional?
Yes. A misrepresentation may be either knowing, or negligent, or a result of mistake.
What is a “material” misrepresentation in false advertising?
A material misrepresentation is one that would affect the decision of an ordinary prudent prospective purchaser.
May a manufacturer or advertiser be held liable for false or misleading advertising when it neither intended to deceive nor knew of deceptive advertising?
Yes, there can be liability if the false advertising misleads a reasonable consumer, even though the company lacked intent to deceive.
What type of claims are examined under laws against false advertising?
Claims relating to the quality, safety, or efficacy and benefits of a product or service that are false or misleading or not adequately substantiated
Can comparative advertisements compare two different products?
Yes, but they must be truthful and not misleading. Comparative advertising must be based on factual, substantiated claims.
How does a business substantiate its advertising claims?
A business must provide adequate evidence to back up the claims made in its advertisements, such as scientific studies, expert testimonials or product testing.
What is “bait-and-switch” advertising?
Bait-and-switch advertising occurs when a business advertises a product at a low price to get consumers to come into a store, and then tries to sell them a more expensive item.
Can an advertisement be false if it leaves out important information?
Yes, omission can also be a type of false advertising when it leads to a consumer being misled.
What is the role of the “reasonable consumer” standard?
The “reasonable consumer” standard is used to determine whether a typical consumer would be misled or deceived by an advertisement.
How do false advertising laws apply to online advertising?
False advertising laws apply equally to online ads, including social media, influencer marketing, and e-commerce websites.
What are “endorsements” and how do they relate to false advertising?
Endorsements are testimonials or recommendations from individuals or organizations. They must be truthful and not misleading, and the endorser must disclose any material connections with the product or service.
Are there exceptions to false advertising laws?
There are some exceptions to false advertising laws, such as commercial speech that falls under political ads or opinions, but they cannot be materially misleading.
What remedies are available in false advertising cases?
Remedies can be either monetary damages or injunctive relief, corrective advertising, etc., which obligates the business to stop this misleading practice.
Can a consumer sue a company for false advertisement?
Yes. Consumers or any consumer protection agency can file an action against businesses that engage in false advertisements.
How is false advertising handled internationally?
False advertising laws vary by country, but many have similar protections for consumers, often enforced by regulatory bodies like the FTC in the U.S. or the Advertising Standards Authority (ASA) in the U.K.
What penalties can businesses face for false advertising?
Penalties can include fines, settlement agreements, and the requirement to run corrective advertisements. In some cases, businesses may face class action lawsuits or other legal consequences.
