False Advertising and Deceptive Business Practices

 Posted on February 20, 2025 in Business Law & Litigation

Consumers are bombarded with advertising. People rely on advertising to make purchasing decisions, and they generally expect advertising to be truthful and accurate. Although advertising can be helpful for consumers by providing information about a product, when advertisers employ false or deceptive tactics to advertise their products or services, this can harm consumers.

Thankfully, false advertising is an illegal type of deceptive business practice and there are laws that protect consumers against it. If you have been harmed by false advertising, an experienced Cook County, IL business litigation attorney can advise you on false advertising law. 

Examples of Deceptive Business Practices That Could Be False Advertising 

• Engaging in bait and switch tactics such as advertising a rental property for sale at a certain price, but charging a much higher price via mandatory fees added on at the last minute.

• Marketing misleading product labels that lead consumers to believe that a product contains an ingredient it does not or that the product is "natural" when it is not. 

• Making promises that certain services are provided with the purchase of a product and not delivering on those promises (while always having had no intention to do so). 

• Falsely representing that a product is "certified organic." 

What Are Laws Against False Advertising?

Many states have specific laws prohibiting false advertising as a deceptive business practice. In Illinois, the Consumer Fraud and Deceptive Business Practices Act prohibits unfair and deceptive business practices in trade and commerce, including false advertising. To determine if an advertisement is deceptive under this law, a court will usually try to determine if a reasonable consumer would be misled by the false advertising. 

The Federal Trade Commission (FTC) is a federal agency that protects consumers and regulates advertising, and businesses that violate advertising laws can face regulatory action from the FTC. Consumers may bring complaints before the FTC, but the FTC also brings claims to protect consumers.

What Penalties Can Businesses Face for False Advertising?

Companies can face significant civil damages for making false advertising claims under the Consumer Fraud and Deceptive Business Practices Act. Consumer class action lawsuits often recover or settle for amounts in the millions of dollars, which are then divided among affected consumers. 

Depending on the case, an individual may also sue and recover penalties under the Consumer Fraud and Deceptive Business Practices Act. The FTC also obtains penalties in the hundreds of thousands to millions of dollars against companies that falsely advertise goods. This money is repaid to affected consumers to compensate them for harm caused. 

Call a Cook County, IL Civil Litigation Attorney

False advertising is regulated as a deceptive business practice for many reasons, including because when businesses mislead consumers it can lead consumers to suffer damages. An experienced Arlington Heights, IL business litigation attorney can advise you on your rights if you have been harmed by false advertising. Call Dickler, Kahn, Slowikowski & Zavell, Ltd. at 847-593-5595 for a consultation today.