What are the elements of a false advertising claim?
False advertising is a type of unfair competition law in California and it consists of five elements. First, there must be a representation, statement, or omission that is either false or misleading. The representation must be made in a commercial advertisement, meaning it must be made in the course of business. Second, the false or misleading statement must have been made with the intention of influencing consumers to buy goods or services. Third, the representation must have actually deceived or have the potential to deceive a substantial segment of targeted consumers. Fourth, the misrepresentation must be material, meaning it must be important enough to influence the consumer’s purchasing decisions. Lastly, there must be actual or possible injury, or financial loss, to the consumer resulting from the false or misleading statement. False advertising law applies to claims made in advertising and labeling of services, as well as goods. Generally speaking, false advertising law covers statements intended to attract the attention of potential customers, such as pricing, product availability, a company’s history, endorsements, and even comparative advertising. False advertising claims can be made against a business by a competitor, consumer, or even the government. If a statement is found to be false or misleading, a business can be liable for civil damages as well as criminal penalties.
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