False Advertising

What is False Advertising?

An advertisement is any information advertising the availability or quality of any property, good, or service. In other words, an advertisement is information presented to get you to buy something or visit a store.

A false advertisement is untrue or misleading information presented to get you to buy something, or to come visit their store.

It’s not easy to spot false advertisements, and oftentimes you won’t realize you were duped until after you buy the product or service. False ads come in many different forms:

• False information about the quality or origin of a product or service: for example, a juice advertised as “All Natural” but containing high fructose corn syrup or some artificial sweeteners; or wine misrepresenting the origins of the grapes (e.g. “Napa Valley” wine, with a majority of the grapes from Temecula, CA); or products claiming to be “Made in the USA” when they are manufactured in another country; or guarantees that a service will be provided within a certain time period, when they are commonly not.
• Bait and Switch: a bait and switch happens when a seller advertises goods at an apparent bargain to lure you to their store, with the intention of selling a different, more expensive product, or the same product at a higher price. Once I saw an online ad for a mini-van. I discussed the price for the specific van (including VIN number) over the phone, and obtained a verbal guarantee that the price was final and would not change once I got to the dealership. When I arrived at the dealership to finalize the purchase, the dealer tried to charge an additional $1,000, claiming the paint on the van was a “special color” (it was gray). I told him to call over a supervisor so I could explain the basis of the lawsuit they’d be facing. Needless to say, they sold me the van at the original agreed upon price.
• Misleading Sales: a sign stating that the store is having a 40% sale, when in fact only some items are discounted at 40% could be false and misleading; or a “sale price” that is always that same price is misleading.

False Advertising is Against the Law

There are a number of laws in place to protect you against false advertising.

In California, there is the False Advertising Law (FAL), Unfair Competition Law (UCL), and Consumer Legal Remedies Act (CLRA).

Under the FAL, false and deceptive advertising is prohibited.

Under the UCL, unlawful, unfair and fraudulent business practices (including advertising that is likely or has a tendency to deceive or confuse the public) are prohibited.

The CLRA makes it unlawful to use unfair or deceptive practices in the sale or lease of goods or services. Specifically, the CLRA outlaws, among other things:

1. advertising goods or services with intent not to sell them as advertised;
2. misrepresenting the standard, quality, or grade of a product or service;
3. making false or misleading statements concerning price reductions; and
4. representing that a transaction provides rights, remedies, or obligations which it does not have.

Under these laws you may be entitled to restitution (your money back), money for damages that you suffered, punitive damages to deter future bad acts, and a court order directing the company to stop their false advertising.

Other states have laws similar to the CLRA to protect consumers like you (e.g. Illinois Consumer Fraud and Deceptive Business Practices Act, Nevada Deceptive Trade Practices Act).

If you’ve been cheated or misled by a company’s advertisements, call (833) 729-5529