What Is False And Misleading Advertising?

What Is False And Misleading Advertising?

You may have finally decided to pursue that new marketing campaign. You could promote your new product on Instagram. It could even be your packaging. The situations all share the common foundation of marketing. If done poorly a business can create a false or misleading impression. Therefore, the aim is to avoid making illegal impressions.

Table of Contents

What is advertising?

Advertising can mean different things to different people. In a nutshell, advertising is your product interacting with customers. This means social media posts or hiring an ad agency. It can also include the packaging on your product. There are lots of others like bait advertising or comparisons. However, silence can sometimes count as misleading advertising.

Download our Starting a Company eBook for Free

Download this comprehensive guide to learn everything you need to start your business the right way.

False and Misleading

The next issue is what counts as false and misleading. So to be a bit technical, the courts have held false as meaning ‘contrary to fact’. Even if the person who made the claim is unaware of it being false they would still be accountable. These false claims can even be made by low-level employees in a business. This means as a business there should be checks in place. There is no excuse for a junior employee to make a false claim and then try and argue they didn’t know.

Types of Claims

The list for what a claim can be made about is almost endless. The Competition and Consumer Act 2010 (Cth) Schedule 2 Chapter 3 Div 1 lists them. Some examples would be quality, standard, origin, benefits and performance. This doesn’t mean fine print can get you out of breaking the rules. As such, big cases in Australia have lost when businesses sold ‘free products’. However, the products ended up costing money. The courts didn’t allow the fine print to protect the firms. Therefore, fine print shouldn’t contradict the general message of an ad. In the case of silence, if an internet provider didn’t tell you that your suburb had no coverage this would be misleading. If you are unsure if your advertising is legal you can check with a consumer lawyer.

Misleading Conduct

You might have heard of misleading and deceptive conduct. This overlaps with false and misleading claims. Hence, it can cause a lot of confusion for laypeople. The main difference is misleading conduct is about the ‘conduct’. In contrast, false and misleading claims are about creating a representation. Therefore, the mere effect of making an impression is enough.

Don't know where to start?

Contact us on 1800 529 728 to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

You may also like
Recent Articles

Get the latest news

By clicking on 'Sign up to our newsletter' you are agreeing to the Lawpath Terms & Conditions

Share:

Register for our free live webinar today!

Tax Strategies for Small Business Success

12:00pm AEDT
Thursday 25th July 2024

By clicking on 'Register for webinar' you are agreeing to the Lawpath Terms & Conditions

You may also like

The 2024 Federal Budget has unveiled a comprehensive package of measures designed to support small to medium enterprises (SMEs) in Australia, while also laying the groundwork for a "Future Made in Australia."
Default interest clauses can help protect lenders' interests, but sometimes they will not be enforceable. Find out more here.
Lying on your resume to get a job is never a good idea. In fact obtaining employment through fraud can actually land you in jail.

Thank you!

Your registration is confirmed. Keep an eye on your inbox for an email with details on how to watch the webinar.