Can advertisers be held responsible for consumer’s reliance on deceptive advertising?
Yes, advertisers can be held responsible for consumer’s reliance on deceptive advertising in Delaware. According to the Delaware Clarification of Advertising Responsibilities, whenever an ad or other form of advertising is misleading or deceptive, the advertiser may be held liable for any losses incurred by people who relied on the ad. This includes both economic and noneconomic losses. In order to be held liable, the advertiser must have engaged in a pattern of deceptive or misleading advertising and must have had actual knowledge of the deception at the time the ad was released. It’s important to note that in order for the consumer to be able to recover for losses, they must be able to prove that they were misled and that they relied on the deceptive advertising. Finally, the Delaware Consumer Fraud Act grants consumers the right to bring an action against an advertiser, business, or service provider who has misled them into making a purchase or entering into a contract. This statue applies broadly to deceptive or unfair trade practices and gives consumers the power to seek compensation for any losses, both direct and indirect, incurred due to the deceptive or misleading advertising.
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