What is false advertising?
False advertising is a form of illegal unfair competition under Delaware law. It occurs when a business intentionally misleads its customers with advertising about its products or services. False advertising can involve misrepresenting the characteristics, features, benefits, or quality of a product, or making false claims about a competitor’s products or services. It can also include failing to provide material information about a product or service such as price or safety information. Under Delaware unfair competition law, it is illegal for businesses to knowingly or recklessly engage in false advertising. Businesses can be held liable for misleading its customers through false or deceptive advertising. This includes liability for a business’s competitors, who could potentially suffer financial losses as a result of the deceiving advertisement. Delaware law also prohibits “bait and switch” false advertising, which is when a business advertises products or services at a low price that are not actually available. This is considered to be a form of fraud and can result in substantial penalties for the business. In addition, businesses must be careful to verify any advertising claims they make; false promises or representations made in an advertisement could lead to liability for the business.
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