Legal Definitions - false advertising

False advertising occurs when a company makes untrue, deceptive, or misleading statements in its advertisements about its own products or services, or those of a competitor.

For an advertisement to be considered false advertising, several key elements are generally present:

• The company makes a statement that is factually incorrect or creates a misleading impression.
• This statement is likely to deceive a significant portion of the audience it targets.
• The deception is important enough that it could influence a consumer's decision to buy the product or service.
• The false advertising causes, or is likely to cause, harm to consumers (who might buy a product based on false pretenses) or to competitors (who might lose sales unfairly).

It's important to note that exaggerated claims that no reasonable person would take literally, often called "puffery" (e.g., "the best coffee on Earth"), are generally not considered false advertising because they are understood as subjective opinions rather than factual claims.

Here are some examples to illustrate false advertising:

• Example 1: Misleading Product Ingredients

  A snack food company launches a new line of granola bars, advertising them as "packed with real fruit and all-natural sweeteners." However, an independent analysis reveals that the bars primarily contain artificial fruit flavoring and high-fructose corn syrup, with only trace amounts of actual fruit. This is false advertising because the company made specific, verifiable claims about its ingredients that were untrue, likely deceiving health-conscious consumers and influencing their decision to purchase the product based on a false premise.

• Example 2: Unsubstantiated Performance Claims

  A vacuum cleaner manufacturer runs a commercial claiming its new model "removes 99.9% of all allergens and pet dander from carpets, outperforming every competitor." In reality, independent tests show its performance is comparable to many other models on the market and does not reach the advertised allergen removal rate. This constitutes false advertising because the company made a specific, measurable claim about its product's superior performance that is not supported by evidence, potentially misleading consumers who prioritize allergen removal and influencing their buying choice over other brands.

• Example 3: Deceptive Environmental Claims (Greenwashing)

  A clothing brand promotes its new apparel line with prominent labels and advertisements stating "100% Eco-Friendly & Sustainably Sourced." However, upon investigation, it's discovered that only a small percentage of the materials are recycled, and the manufacturing process involves significant water pollution and non-renewable energy sources. This is false advertising because the brand made broad, unsubstantiated environmental claims designed to appeal to environmentally conscious consumers, creating a misleading impression about the product's true ecological impact and influencing purchasing decisions based on inaccurate information.