If you’ve ever purchased a product or service based on advertising claims that turned out to be misleading or untrue, you may have been the victim of false advertising. California has some of the strongest consumer protection laws in the country, and a california consumer law attorney can help you understand your options for holding deceptive businesses accountable.
False advertising goes well beyond a fast-food burger that doesn’t look quite like the picture on the billboard. While that kind of disappointment is frustrating, it’s generally not what the law targets. False advertising occurs when a business omits, misrepresents, or distorts important information that a consumer needs to make an informed purchasing decision. Under the federal Consumer Protection Act, advertising is considered misleading if it involves false, misleading, or deceptive information that is likely to cause the average consumer to act in a way they otherwise would not.
Take pharmaceutical advertising as an example. Even when a medication carries known risks of serious health consequences such as heart attack or stroke, the manufacturer is legally required to disclose those risks so that consumers and their doctors can make informed decisions. When a company buries or omits those risks, the advertising crosses the line from persuasion into deception.
Common Examples of False Advertising
False advertising takes many forms, and recognizing them can help you identify when your rights have been violated.
Untrue claims about goods or services. If a company advertises blue fidget spinners made from sterling silver, those products must actually be blue and made of genuine sterling silver. Any material misrepresentation about what a product is or what it contains can constitute false advertising.
Deceptive pricing. Advertising a low sale price to lure customers into a store or onto a website, only to charge a higher price at checkout, is a textbook deceptive practice. Bait-and-switch tactics, where a business advertises an attractive deal it has no real intention of honoring, are among the most common forms of false advertising.
Hidden fees and charges. Promising free delivery or free installation and then tacking on charges at the point of sale is fraudulent advertising. The Federal Trade Commission refers to hidden fees that appear only in the final price as “cramming,” and this practice is illegal under federal law.
Material omissions. Leaving out pertinent information about a product or service, such as known defects, limitations, or conditions, is just as deceptive as making an affirmative false statement. When a company knows something that would affect your purchasing decision and deliberately withholds it, that omission can form the basis of a legal claim.
False endorsements or affiliations. A business that claims membership in the Better Business Bureau or another credentialing organization when it holds no such membership is engaging in false advertising. These false affiliations are designed to create a misleading impression of credibility.
Misleading impressions. Even if individual statements in an advertisement are technically accurate, the overall impression conveyed to consumers can still be misleading. If the net effect of the advertising leads a reasonable consumer to a false conclusion, it may violate the law.
California’s Powerful False Advertising Laws
While federal law provides a baseline of consumer protection, California goes significantly further. The state has enacted a trio of overlapping statutes that give consumers and prosecutors powerful tools to combat deceptive business practices.
California’s False Advertising Law (Bus. & Prof. Code § 17500). This statute makes it unlawful for any person doing business in California to disseminate any statement about goods or services that is untrue or misleading, and which is known or should be known to be untrue or misleading. A violation of the FAL is a misdemeanor, punishable by up to six months in jail or a fine of up to $2,500. Consumers can also bring private actions seeking injunctive relief and restitution.
California’s Unfair Competition Law (Bus. & Prof. Code § 17200). The UCL prohibits any unlawful, unfair, or fraudulent business act or practice. This is one of the broadest consumer protection statutes in the country. Importantly, a UCL claim does not require proof that you personally relied on the false advertising or even that you suffered a traditional injury. The UCL provides for restitution and injunctive relief, and courts have used it aggressively against companies engaged in deceptive marketing.
The Consumer Legal Remedies Act (Civ. Code § 1750). The CLRA specifically prohibits a list of deceptive practices in consumer transactions, including misrepresenting the characteristics, uses, or benefits of goods or services. Unlike the UCL and FAL, the CLRA allows consumers to recover actual damages, punitive damages in cases of willful misconduct, and attorney’s fees. This makes the CLRA a particularly effective tool for individual consumers who have suffered financial losses due to false advertising.
In addition, California recently expanded its false advertising protections with AB 2426, which took effect on January 1, 2025. This new law targets deceptive advertising of digital goods by prohibiting sellers from using terms like “buy” or “purchase” when consumers are actually receiving a revocable license rather than an ownership interest. Violations can result in civil penalties of up to $2,500 per violation and exposure to class actions under the UCL.
Federal Laws That Protect Consumers
Federal law provides additional layers of protection against false advertising.
Section 5 of the Federal Trade Commission Act declares deceptive acts or practices that make products and services appear to be something they are not to be an illegal act. The FTC has authority to investigate companies, issue cease-and-desist orders, and impose penalties for violations.
The Lanham Act is a primary federal statute that allows businesses and consumers to bring civil lawsuits against companies that knowingly participate in false advertising. The Lanham Act is particularly useful in cases where one company’s false advertising causes competitive harm, but it also provides a framework for addressing consumer-facing deception.
Federal law also requires that products offering a guarantee or warranty must live up to those promises. If a company advertises a money-back guarantee or a product warranty, failing to honor those commitments constitutes false advertising.
What California Consumers Can Do About False Advertising
If you believe you’ve been the victim of false advertising, California law provides several avenues for relief.
File a complaint with regulatory agencies. You can report deceptive advertising to the California Attorney General’s Office, your local district attorney, or the Federal Trade Commission. The California AG has a dedicated consumer complaint process and actively pursues enforcement actions against companies engaged in deceptive practices. You may also consider filing a complaint with the Better Business Bureau, which handles roughly one million consumer complaints per year and resolves approximately two-thirds of them through its free dispute resolution services.
Pursue legal action. If you have incurred financial losses or other damages as a result of false advertising, you may be able to file a lawsuit. Under California’s CLRA, you can seek actual damages, punitive damages, and attorney’s fees. Under the UCL and FAL, you can seek restitution and injunctive relief. In many cases, false advertising affects large numbers of consumers in the same way, making class action litigation an effective and efficient path to recovery.
Consult with an attorney. False advertising claims involve complex legal standards, including what constitutes a “material” misrepresentation, whether the advertising would mislead a “reasonable consumer,” and how to calculate damages. An attorney experienced in California consumer protection law can evaluate the strength of your claims and advise you on the best course of action.
Protect Yourself Going Forward
False advertising can have a serious financial and personal impact on consumers. Whether it involves a hidden fee on a routine purchase or a dangerous omission in pharmaceutical marketing, deceptive practices undermine your ability to make informed decisions. California’s consumer protection laws exist specifically to hold businesses accountable and to make sure consumers have meaningful remedies when companies cross the line.
If you feel like you’ve been misled by a business, don’t let it go. Contact a reputable attorney who can help you explore your legal options under California and federal law.
