Legal Definitions - statutory disclaimer

A statutory disclaimer is a formal statement that limits or denies responsibility, liability, or a claim, and is specifically required by law (a statute). These disclaimers are not optional; they must be included in certain documents, products, or communications as mandated by legislative bodies to inform individuals of specific risks, limitations, or conditions. Their purpose is to ensure transparency and protect consumers or other parties by providing essential information that the law deems necessary.

• Example 1: Tobacco Product Warning Labels

  When you see a pack of cigarettes, you will notice prominent warning labels such as "SURGEON GENERAL'S WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, And May Complicate Pregnancy." This is a classic example of a statutory disclaimer. Federal law, specifically the Federal Cigarette Labeling and Advertising Act, mandates that these precise warnings appear on all tobacco product packaging and advertisements. The law requires this disclaimer to inform consumers about the significant health risks associated with smoking, thereby limiting the manufacturer's ability to claim ignorance or deny responsibility for these known dangers.

• Example 2: Investment Prospectus Disclosures

  When a company offers shares or other securities to the public, it must provide potential investors with a detailed document called a prospectus. Within this prospectus, you will find numerous statutory disclaimers. For instance, there will be statements like "An investment in [Company Name] involves a high degree of risk. You should carefully consider the risks described in the 'Risk Factors' section of this prospectus before making an investment decision." and "Past performance is not indicative of future results." These are required by securities laws, such as the Securities Act of 1933, to ensure that investors are fully aware of the inherent risks and limitations of investing, preventing them from later claiming they were misled about potential returns or safety.

• Example 3: "Results Not Typical" in Advertising

  Consider an advertisement for a weight-loss supplement or a fitness program that features dramatic "before and after" photos. Often, at the bottom of the screen or in fine print, you'll see a disclaimer such as "Results not typical. Individual results may vary." While not always directly from a single statute, these types of disclaimers are often mandated or strongly encouraged by regulatory bodies like the Federal Trade Commission (FTC) under laws designed to prevent deceptive advertising. The FTC requires advertisers to substantiate claims and, if results are not typical, to clearly disclose that fact to consumers, thereby limiting the company's liability if a customer does not achieve the advertised outcome. This ensures consumers have a realistic expectation rather than being misled by exceptional cases.