Trends In False Advertising Cases: A Cautionary Tale

Law360, New York (July 26, 2012, 2:21 PM EDT) -- There is a growing trend toward increased potential risk of litigation and significant damages for marketers who cannot adequately substantiate product benefit claims in their marketing materials and advertising. The risk comes not just from competitors, but as the cases discussed herein show, from the Federal Trade Commission, from state attorneys general and from class action suits brought by contingent fee plaintiffs’ counsel on behalf of consumers. Three marketers have paid over $140 million in recent months to settle such false advertising claims.

Two recent FTC...
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