Delev & Associates
  • Home
  • Practice Areas
    • Before Extending Credit
    • Civil Litigation
    • Commercial Collections UCC
    • Consumer Collections
    • Consumer Resource Center
    • Creditors’ Rights
  • About
    • Gregory D. Delev
    • Brian T. Giles
    • Donald W. Harper
  • Articles
  • Newsletters
  • Blog
  • Contact
Select Page

False advertising can hurt consumers and companies

by greg delev | Jan 21, 2016 | Business Litigation

Businesses in Cincinnati and elsewhere have an obligation to their customers to be honest about the services or products they sell. In fact, to knowingly advertise false information is against the law. False advertising has the potential to rob consumers of their money and time. It can also cause harm if the products’ claims could affect customers’ health or safety.

What is false advertising? According to the Federal Trade Commission, a company’s advertisements should not trick or mislead consumers into thinking a product can do something an ad claims. When necessary, the marketing should include scientifically-backed information. Truth in advertising is especially important for such products as medications and health supplements, tobacco, alcohol and food. The FTC also strictly enforces advertising related to the Internet and technological products.

A class-action lawsuit against the Dannon yogurt company illustrates a typical false advertising claim. The company claimed that its Activia product had special scientifically-proven benefits, when in actuality, it was the same as any other yogurt product. According to Business Insider, the company paid customers damages of $45 million. Another well-known claim involved eye cream manufactured by Olay. The product’s advertising promised dramatic wrinkle reduction, but it was found that the photos of the older model in the ads were retouched.

In addition to potential lawsuits, companies that make false advertising claims may face having their assets frozen and court actions to immediately desist perpetuating scams. Ensuring that advertising is truthful and accurate is in a company’s best interests, as well as those of customers.

Recent Posts

  • Types of acceptable collateral for secured loans
  • Can you recover the costs for materials with a mechanic’s lien?
  • Retaining property from a borrower with financial troubles
  • How does foreclosure work in Ohio?
  • What are a creditors’ collection options?

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014

Categories

  • Business Litigation
  • Commercial Collections
  • Contract Disputes
  • Firm News
  • Uncategorized

RSS Feed

Subscribe To This Blog’s Feed