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Can I advertise my products or services without violating truth-in-advertising laws in California? What are the requirements?

Truth-in-Advertising Laws in California

California has strict truth-in-advertising laws that prohibit false or misleading advertising claims. These laws apply to any person doing business in California and advertising to consumers in California [1.1].

Requirements for Advertising in California

To avoid violating truth-in-advertising laws in California, advertisers must ensure that their advertising claims are truthful and not misleading. Advertisers must not make any false or misleading advertising claim, including claims that purport to be based on factual, objective, or clinical evidence, compare the product’s effectiveness or safety to that of other brands or products, or purport to be based on any fact [1.1].

If an advertiser makes any of the above claims, they must provide evidence of the facts on which the advertising claims are based upon written request of the Director of Consumer Affairs, the Attorney General, or any city attorney, county counsel, or district attorney [1.1].

Prohibited Advertising Practices in California

In addition to the above requirements, California law prohibits certain advertising practices. For example, it is unlawful to falsely represent by advertisement the quantity of any article so advertised that will be sold to any one customer on his demand in a single transaction, and willfully or negligently to fail to include in such advertisement a statement that any restriction that is in fact put upon the quantity of any article so advertised that is sold or offered for sale to any one customer on his demand in a single transaction [1.3].

It is also unlawful to advertise or market in a manner that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter, tends to create a misleading impression [3.1].

Penalties for Violating Truth-in-Advertising Laws in California

Violating truth-in-advertising laws in California can result in penalties, including injunctive relief against further violations, actual damages or statutory damages of five hundred dollars ($500) per violation, and an increase in the amount of the award to an amount equal to not more than three times the amount otherwise available under subparagraph (B) if the court finds that the defendant willfully or knowingly violated the law [2.3].

Additional Advertising Requirements in California

California law also has additional advertising requirements for certain types of merchandise. For example, it is unlawful to advertise, call attention to, or give publicity to the sale of any merchandise that is surplus materials as defined in the federal Surplus Property Act of 1944 (50 U.S.C. App. Sec. 1622 et seq.), unless there is conspicuously displayed directly in connection with the name and description of that merchandise and each specified article, unit, or part thereof, a direct and unequivocal statement, phrase, or word which will clearly indicate that the merchandise or each article, unit, or part thereof so advertised is or consists of surplus materials as defined in the federal Surplus Property Act of 1944 [2.1].

It is also unlawful to solicit a sale or order for sale of goods or services at the residence of a prospective buyer, in person or by means of telephone, without clearly, affirmatively and expressly revealing at the time the person initially contacts the prospective buyer, and before making any other statement, except a greeting, or asking the prospective buyer any other questions, that the purpose of the contact is to effect a sale [1.2].

Furthermore, it is unlawful to advertise, call attention to, or give publicity to the sale of any merchandise that is secondhand or used merchandise, or which merchandise is defective in any manner, or which merchandise consists of articles or units or parts known as “seconds,” or blemished merchandise, or which merchandise has been rejected by the manufacturer thereof as not first class, unless there is conspicuously displayed directly in connection with the name and description of that merchandise and each specified article, unit, or part thereof, a direct and unequivocal statement, phrase, or word which will clearly indicate that the merchandise or each article, unit, or part thereof so advertised is secondhand, used, defective, or consists of “seconds” or is blemished merchandise, or has been rejected by the manufacturer thereof, as the case may be [2.2].

Conclusion

To advertise products or services in California without violating truth-in-advertising laws, advertisers must ensure that their advertising claims are truthful and not misleading. Advertisers must also avoid prohibited advertising practices and be prepared to provide evidence of the facts on which their advertising claims are based upon written request. Additionally, California law has additional advertising requirements for certain types of merchandise, such as surplus materials, secondhand or used merchandise, and defective merchandise. Violating truth-in-advertising laws can result in penalties, including injunctive relief and damages.

Source(s):
Jurisdiction

California