Legal Definitions - touting

Touting refers to the act of aggressively promoting a product, service, or investment opportunity with strong recommendations, often relying on exaggerated claims or subjective praise rather than objective facts, primarily to attract business.

Here are some examples to illustrate this concept:

• Imagine an online influencer who frequently posts videos urging their followers to invest in a particular, lesser-known stock. They repeatedly declare it "the absolute best investment opportunity of the decade" and "guaranteed to make you rich," without providing any detailed financial analysis, risk assessments, or verifiable data to support these bold claims. Instead, they focus on emotional appeals and vague promises of future wealth.

  This situation illustrates touting because the influencer is actively soliciting investment (a form of business) by highly recommending a security (the stock) based largely on exaggerated and unsubstantiated statements ("absolute best," "guaranteed to make you rich") rather than concrete, factual information.

• Consider a salesperson at a trade show demonstrating a new kitchen gadget. They loudly proclaim that this device can "effortlessly cook any meal to perfection in minutes," "replace every other appliance in your kitchen," and is "the only tool you'll ever need," while only showing it perform a very simple task. They avoid questions about its limitations or specific technical specifications, instead focusing on sweeping, positive generalizations.

  This is an example of touting because the salesperson is soliciting sales (business) for a product (the kitchen gadget) through highly enthusiastic and exaggerated claims ("cook any meal to perfection," "replace every other appliance") that are more about persuasive puffery than verifiable facts, aiming to convince potential customers to buy.

• Picture a self-proclaimed business consultant offering a seminar titled "Unlock Your Company's Full Potential: The Secret to Exponential Growth." During the seminar, they promise attendees that their "revolutionary methodology" will "guarantee unprecedented profits and market dominance within six months," without outlining specific strategies, providing case studies of past successes, or explaining how their method actually works. The focus is entirely on the grand, positive outcomes.

  This demonstrates touting as the consultant is soliciting business (seminar attendance and potential consulting contracts) by making highly optimistic and vague recommendations ("revolutionary methodology," "guarantee unprecedented profits") that lack concrete evidence or detailed plans, relying heavily on persuasive but unsubstantiated promises.