There are several types of penalties that a company might face for false advertising. If important information is omitted from an advertisement and the consumer wouldn’t have bought the product or service had they known the truth, the consumer may be able to sue the company for this failure to disclose. By an advertisement may also be “false” based on what it doesn’t say. They may also show they relied on a false advertisement if a false statement caused them to pay more for the company’s product or service than they otherwise would have.Ī false advertisement may directly say something that is not true, or is misleading. Consumers may show reliance be proving they wouldn’t have bought the product or service if not for the false advertising. Generally, false advertising laws say that consumers have proved their case if they show: (a) that the advertising was false or misleading (b) that the falsity was “material,” often meaning the company lied about something important (c) the consumer saw the false advertisement and (d) the consumer relied on the false advertising in purchasing the product or service. What is the law’s definition of false advertising? Even if your state doesn’t have a false advertising law, you can still sue for common-law fraud. Many states have a specific false advertising law that gives consumers the right to sue businesses for misleading them into purchasing or paying more for the company’s goods or services. Can you sue a company for false advertising? False advertising laws provide important rights for consumers, arming them with the ability to seek monetary damages when they’ve been misled. In the United States, there are state and federal false advertising laws that prohibit various types of deceptive advertising, misleading labeling, and similar practices.
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