liabilty of false advertisement

Topics: Deception, Advertising, False advertising Pages: 2 (502 words) Published: September 7, 2014
14IP60014 RGSOIPL 1nd Year


False advertising also known as deceptive advertising in which it  is the use of false or misleading statements in marketing and also the falsification of the product which may takes negatively affect many stakeholders specifically customers. False advertising is a part of three mainly components: false, misleading and deceptive advertising. In United States, Federal Trade Commission (FTC) defines a false ad as "misleading in respect of a material". In other words, the merchandise or goods is advertised in such a way that is untrue, fraudulent and contrary to fact. For example selling a talcum powder, or even baking soda, as baking powder, or, more egregiously but also more easily detected that a car that can turn into an airplane. The Lanham Act, 1946 also known as the Trademark Act which is a federal statute that regulates the use of Trademarks in commercial activity. Trademarks are distinctive pictures, words, and other symbols or devices used by businesses to identify their goods and services. The Lanham Act also gives trademark users exclusive rights to their marks, thereby protecting the time and money invested in those marks. The act also serves to reduce consumer confusion in the identification of goods and services. Claims by Competitors under the Lanham Act 

The competitors of a product manufacturer whose products are sold by a retailer can assert claims for false advertising under Section 43(a) of the Lanham Act against all parties responsible for disseminating false or misleading statements regarding the goods or services. In order to succeed on a false advertising claim under the Lanham Act, a plaintiff must prove: 1. The defendant made a false or misleading statement in a commercial advertisement about its own or the plaintiff’s product. 2. The deception is material (i.e., it is likely to influence the...
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