What are the laws against false advertising?

It is illegal for a business to engage in conduct that misleads or deceives or is likely to mislead or deceive consumers or other businesses. This law applies even if you did not intend to mislead or deceive anyone or no one has suffered any loss or damage as a result of your conduct.

Can you sue for false advertising?

Yes, a person is generally allowed to file a lawsuit if they have been the victim of false advertising. This usually results in a lawsuit against a business for misleading them into purchasing or paying for goods or services.

Can you report false advertising?

If you wish to make a complaint about an advertisement you have seen or heard in NSW, you can contact Ad Standards by phone (02) 6173 1500 or make a complaint online.

What would be considered false advertising?

State and federal laws define the practice of false or misleading advertising as: The act of using deceptive, misleading, or false statements about a product or service in an advertisement. Any advertising statements or claims that are deceptive, misleading, or false about a product or service that’s being sold.

What is the legal definition of false advertising?

The concept of false advertising appears in a variety of federal and state laws. Generally under these laws, “false advertising” refers to a representation or omission that is likely to mislead a consumer who is acting reasonably under the circumstances.

Can a state Attorney General sue for false advertising?

For example, in California, the state attorney general can bring a lawsuit to recover civil penalties up to $2,500 for each false advertisement sent to a consumer. The Federal Trade Commission (FTC), a federal agency charged with protecting consumers, can collect civil penalties up to $40,000.

Can a consumer prove reliance on a false ad?

Consumers may show reliance be proving they wouldn’t have bought the product or service if not for the false advertising. 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.

Can a class action lawsuit be filed for false advertising?

When a claim for false advertising is based on state law, however, the statutes in the jurisdiction hearing the case will control the process. Also, in class action false advertising lawsuits that affect many individuals or involve businesses from more than one state, the Uniform Deceptive Trade Practices Act (“UDTPA”) may provide guidance as well.