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Can I advertise my products or services without violating truth-in-advertising laws in Virginia? What are the requirements?
To advertise products or services in Virginia without violating truth-in-advertising laws, one must ensure that the advertisement is not false, misleading, or deceptive, and that all terms, conditions, and disclaimers are stated clearly and conspicuously. Additionally, permits and licenses may be required for certain types of advertising. Pyramid promotional schemes are prohibited. Here are some additional requirements and regulations to keep in mind:
Advertising Comparison Price of Goods or Services
According to VACV 59.1-207.42, no supplier shall knowingly advertise a comparison price based on another supplier’s price unless:
- The supplier can substantiate that the comparison price is the price offered for sale by another supplier in the regular course of business for goods or services of substantially the same kind and quality, and with substantially the same service in the defined trade area;
- The trade area to which the advertisement refers is clearly defined and disclosed; and
- A clear and conspicuous disclosure is made in the advertisement that the price used as a basis of comparison is another supplier’s price, and not the supplier’s own price.
Advertising former price of goods or services
According to VACV 59.1-207.41, no supplier shall knowingly advertise a former price of any goods or services unless:
- Such former price is the price at or above which substantial sales were made in the recent regular course of business; or
- Such former price was the price at which such goods or services or goods or services of substantially the same kind, quality, or quantity and with substantially the same service were openly and actively offered for sale for a reasonably substantial period of time in the recent regular course of business honestly, in good faith and not for the purpose of establishing a fictitious higher price on which a deceptive comparison might be based; or
- Such former price is based on a markup that does not exceed the supplier’s cost plus the usual and customary markup used by the supplier in the actual sale of such goods or services or goods or services of substantially the same kind, quality, or quantity and with substantially the same service, in the recent regular course of business; or
- The date on which substantial sales were made, or the goods or services were openly and actively offered for sale for a reasonably substantial period of time at the former price is advertised in a clear and conspicuous manner.
Untrue, deceptive or misleading advertising, inducements, writings or documents
According to VACV 18.2-216, any person who, with intent to sell or in anywise dispose of merchandise, securities, service or anything offered by such person, firm, corporation or association, directly or indirectly, to the public for sale or distribution or with intent to increase the consumption thereof, or to induce the public in any manner to enter into any obligation relating thereto, or to acquire title thereto, or any interest therein, makes, publishes, disseminates, circulates or places before the public, or causes, directly or indirectly to be made, published, disseminated, circulated or placed before the public, in a newspaper or other publications, or in the form of a book, notice, handbill, poster, blueprint, map, bill, tag, label, circular, pamphlet or letter or in any other way, an advertisement of any sort regarding merchandise, securities, service, land, lot or anything so offered to the public, which advertisement contains any promise, assertion, representation or statement of fact which is untrue, deceptive or misleading, or uses any other method, device or practice which is fraudulent, deceptive or misleading to induce the public to enter into any obligation, shall be guilty of a Class 1 misdemeanor.
Advertising merchandise, etc., for sale with intent not to sell at price or terms advertised; prima facie evidence of violation
According to VACV 18.2-217, any person who in any manner advertises or offers for sale to the public any merchandise, goods, commodity, service or thing with intent not to sell, or with intent not to sell at the price or upon the terms advertised or offered, shall be guilty of a Class 1 misdemeanor.
Prohibition of false and misleading signs
According to VACV 33.2-1232, it shall be unlawful for any person to erect or maintain alongside, or in plain view of, any public highway any false or misleading sign of any kind or character purporting to furnish travel information relating to place or direction. It shall be unlawful for any person to erect or maintain alongside, or in plain view of, any public highway any sign of any kind or character purporting to furnish travel information relating to merchandise or services unless the design of such sign, the information thereon, and the location thereof are approved in writing by the Commissioner of Highways.
In summary, to advertise products or services in Virginia without violating truth-in-advertising laws, one must ensure that the advertisement is not false, misleading, or deceptive, and that all terms, conditions, and disclaimers are stated clearly and conspicuously. Additionally, permits and licenses may be required for certain types of advertising. Pyramid promotional schemes are prohibited. It is also important to comply with regulations regarding comparison prices, former prices, untrue or misleading advertising, advertising merchandise with intent not to sell, and false or misleading signs.
Jurisdiction
Virginia