Legal Definitions - deceptive act

A deceptive act refers to any action, statement, or omission by a business that is likely to mislead an average person acting reasonably under similar circumstances. The key is that the conduct has the potential to create a false impression or misunderstanding, even if no one was actually harmed or tricked. It focuses on the likelihood of deception rather than requiring proof of actual harm.

Here are some examples illustrating a deceptive act:

• Misleading "Free Trial" Offers: A company advertises a "free 30-day trial" for a subscription service, but buries a clause in the fine print that automatically enrolls the customer in a costly annual plan unless they cancel within a very short, often unstated, window. The company also makes cancellation difficult.

  How this illustrates the term: A reasonable consumer would understand a "free trial" to mean they can try the service without financial obligation for the stated period, and that any subsequent charges would be clearly communicated and require explicit consent. The hidden clause and difficult cancellation process are likely to deceive consumers into incurring charges they did not intend, making this a deceptive act.

• Unsubstantiated Environmental Claims: A clothing brand prominently labels its new line of apparel as "100% sustainable and eco-friendly" without providing any verifiable evidence or certifications to support these broad claims. In reality, the manufacturing process uses significant non-renewable resources and generates substantial waste.

  How this illustrates the term: Consumers who prioritize environmental impact would reasonably interpret "100% sustainable and eco-friendly" as meaning the product has minimal negative environmental effects throughout its lifecycle. Without substantiation, these claims are likely to mislead a reasonable consumer into believing they are making an environmentally responsible purchase when they are not, thus constituting a deceptive act.

• Exaggerated Health Benefits: A dietary supplement company markets its product with bold claims like "Lose 20 pounds in a week without diet or exercise!" and features testimonials from actors implying rapid, effortless weight loss, despite lacking scientific evidence to support such extreme results.

  How this illustrates the term: A reasonable consumer, even one hopeful for weight loss, would likely be swayed by such strong, specific claims and testimonials, believing the product offers a quick and easy solution. The company's unsubstantiated and exaggerated claims are likely to deceive consumers about the product's actual effectiveness, making this a deceptive act.