When you purchase a product based on an ad or statement that you later learn to be untrue, you are the victim of false, or deceptive advertising. As a consumer you are protected against this type of advertising and can sue the business that released the advertisement or lodge a complaint against them to a state agency. Successfully proving false advertising can allow you to recover lost money on the sale.
Identification
False advertising can impact both the consumer and other companies. While another company can sue for copyright infringement or product disparagement, consumers are more focused on deceptive practices or a failure on the part of a company to disclose information about a product. For example, false advertising takes place if a company advertises the price of a product as $100 but sells it to consumers for $110. Another example is offering a product for a discounted price but not alerting consumers that it is a used or damaged product. A consumer has the right to be aware of any flaws in the product he is receiving.
Proof
According to Legal Dictionary, in order to successfully prove your case against a company accused of false advertising you must fulfill five requirements. The first requirement is proof that the deceptive statement has been made, either in print, image, television or radio. The second requirement is that more than just the plaintiff in the case can misconstrue the statement made. For example, one person being deceived will not fulfill this requirement, hundreds of deceived consumers will. The false advertising should also increase the chance that a purchase will be made and involve products that can be sold across state lines. The final requirement is that purchase of the product causes a loss of money by the consumer.
State Laws
Laws regarding deceptive advertising vary by state. In Georgia, for example, stating a service is of a certain quality when it has been proven false is punishable under the Georgia Fair Business Practices Act. Wisconsin has laws that extend to oral misrepresentation of a product, so, for example, a salesperson cannot make claims about a product that are known to be untrue. For a full listing of state laws you can contact your state's Consumer Protection office (see Resources).
Rectification
If you win a case against a business then you may be entitled to punitive damages. According to the legal website Nolo, "in an ordinary lawsuit, a plaintiff can recover only his or her actual losses." However, depending upon the laws that are in place for the state in which the infraction occurred you may win additional money based on what laws were broken in the deceptive advertising. The business may also be forced to release a corrected advertisement to those affected by the initial ad.
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