California False Advertising Demand Letters

Complete guide to FAL 17500, UCL 17200, and CLRA claims for deceptive advertising practices

Understanding California False Advertising Claims

Core concept: California has some of the strongest false advertising laws in the nation. When a business makes false, misleading, or deceptive claims about products or services, consumers have multiple legal avenues to recover damages and force businesses to stop deceptive practices.

What Is False Advertising?

False advertising occurs when a business makes untrue, misleading, or deceptive statements about products or services to induce consumers to purchase. California law prohibits advertising that is untrue or misleading, and the standard focuses on whether a reasonable consumer would be deceived.

Common Types of False Advertising

Type Description Examples
Bait-and-Switch Advertising one product/price to lure customers, then pushing a different (usually more expensive) item Car dealer advertises $15,000 car that's "just sold" when you arrive; pushes $25,000 model instead
False Price Claims Inflating "original" prices to make discounts seem larger, or advertising sale prices that aren't real discounts "Was $500, Now $199!" when item was never sold at $500; "50% off" when price was raised before sale
Misleading Quality Claims Misrepresenting product quality, grade, or characteristics "100% organic" when product contains synthetic ingredients; "Professional grade" tools that are consumer-level
False Origin Claims Misrepresenting where product was made or sourced "Made in USA" label on imported goods; "Italian leather" that's actually synthetic
Fake Reviews/Testimonials Fabricated reviews, paid endorsements without disclosure, or suppressing negative reviews Company writes own 5-star reviews; pays influencers without #ad disclosure
Hidden Fees Advertising low prices but adding mandatory fees at checkout Hotel advertises $99/night, charges $50 "resort fee" at checkout; concert tickets with 30% "service fees"
False Scarcity Creating artificial urgency through fake limited availability "Only 2 left!" when hundreds in stock; "Sale ends today!" (same sale runs every day)
Deceptive Imagery Using photos or visuals that misrepresent the actual product Food photos showing much larger portions than served; rental property photos from years ago showing better condition

California's Legal Framework

California provides multiple overlapping statutes to combat false advertising. You can often bring claims under several laws simultaneously:

State Law Claims

  • False Advertising Law (FAL) - Bus. & Prof. Code Section 17500 et seq.
  • Unfair Competition Law (UCL) - Bus. & Prof. Code Section 17200 et seq.
  • Consumers Legal Remedies Act (CLRA) - Civil Code Section 1750 et seq.

Federal Law Claims

  • Lanham Act - 15 U.S.C. Section 1125(a) (primarily for competitor claims, but consumers may benefit)
  • FTC Act - 15 U.S.C. Section 45 (enforced by FTC, not private right of action)
Strategic advantage: By combining FAL, UCL, and CLRA claims, you can:
  • Maximize available remedies (damages, restitution, injunctive relief)
  • Trigger one-way attorney fee shifting under CLRA
  • Create multiple paths to recovery if one theory fails
  • Increase settlement pressure on defendants

Who Can Sue?

Private Consumers

  • FAL Section 17500: No direct private right of action (must use UCL Section 17200 as vehicle)
  • UCL Section 17200: Any person who has "suffered injury in fact and lost money or property" as a result of unfair competition
  • CLRA Section 1750: "Consumer" who purchased goods or services for personal, family, or household purposes

Competitors

  • Lanham Act: Competitors can sue for false advertising that damages their business
  • UCL: Competitors can sue for unfair competition affecting their business

Government Enforcement

  • California Attorney General
  • District Attorneys
  • City Attorneys (in cities with populations over 750,000)
  • FTC (federal false advertising)

Why False Advertising Claims Are Powerful

Key advantages of California false advertising claims:
  • No intent required: FAL and UCL don't require proof that defendant intended to deceive - only that the ad was objectively misleading
  • Reasonable consumer standard: Courts ask whether a "reasonable consumer" would be misled, not whether you personally were deceived
  • Attorney fees: CLRA provides one-way fee shifting - you recover fees if you win; defendant doesn't if you lose
  • Restitution: UCL allows recovery of money lost due to unfair practices, even if you received some value
  • Class actions: False advertising affecting many consumers is well-suited for class certification
  • Injunctive relief: Courts can order businesses to stop deceptive practices and correct false claims

Legal Basis for False Advertising Claims

Key point: Understanding the elements of each statute helps you draft stronger demand letters and build more compelling cases. Each law has slightly different requirements and remedies.

False Advertising Law (FAL) - B&P Code Section 17500

Statutory Language

"It is unlawful for any person... to make or disseminate... any statement... which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading..."

Elements to Prove

  1. Statement or representation: Defendant made a statement about goods, services, or business
  2. Dissemination: Statement was published, broadcast, or communicated to the public
  3. Untrue or misleading: Statement was false or likely to deceive a reasonable consumer
  4. Knowledge or should have known: Defendant knew or should have known statement was false/misleading
  5. Intent to sell: Statement was made with intent to dispose of property, services, or to induce entry into obligation
Important: FAL has no direct private right of action for damages. Consumers must bring FAL violations through a UCL Section 17200 claim (which incorporates FAL violations as "unlawful" business practices).

What Courts Look For

  • Reasonable consumer test: Would a significant portion of the general consuming public be likely to be deceived?
  • Total impression: Courts examine the overall impression created by the advertisement, not just individual words
  • Material representation: The false statement must relate to something consumers care about in making purchase decisions
  • Actual deception not required: Likelihood of deception is sufficient; plaintiff need not prove they were actually deceived

Unfair Competition Law (UCL) - B&P Code Section 17200

The "Three Prong" Test

UCL prohibits business practices that are:

Prong Standard False Advertising Application
Unlawful Violates any other law (state or federal) FAL Section 17500 violation = "unlawful" under UCL
Unfair Practice substantially injures consumers, not outweighed by benefits, and consumers couldn't reasonably avoid Deceptive pricing schemes, hidden fees that couldn't be discovered
Fraudulent Likely to deceive members of the public Any advertising likely to mislead reasonable consumers

Standing Requirements (Proposition 64)

Critical requirement: To sue under UCL, you must prove:
  • Injury in fact: You actually suffered harm
  • Lost money or property: Economic injury directly traceable to defendant's conduct
  • Causation: The unfair practice caused your loss (you wouldn't have purchased or paid as much absent the deception)

Cannot sue merely because you saw false ad - must show you relied on it and lost money as a result.

UCL Remedies

  • Restitution: Return of money acquired through unfair practices
  • Injunctive relief: Court order to stop deceptive practice
  • Civil penalties: Up to $2,500 per violation (government enforcement only)
  • No punitive damages: UCL doesn't provide for punitive damages
  • No attorney fees: UCL doesn't provide fee-shifting (but CLRA does)

CLRA - Civil Code Section 1750 et seq.

Prohibited Practices Related to False Advertising

Section Prohibition False Advertising Examples
1770(a)(2) Misrepresenting source or certification "FDA approved" when not approved; "Certified organic" without certification
1770(a)(4) Using deceptive representations in sale Any materially false statement about goods/services
1770(a)(5) Misrepresenting goods as having characteristics they don't have "Waterproof" product that leaks; "all-natural" with synthetic ingredients
1770(a)(7) Misrepresenting quality or grade "Premium" quality that's actually standard; "Grade A" that's Grade B
1770(a)(9) Advertising with intent not to sell as advertised Classic bait-and-switch tactics
1770(a)(13) Making false statements about price reductions Fake "compare at" prices; artificial markups before "sale"
1770(a)(14) Misrepresenting rights and remedies False warranty claims; fake money-back guarantees
1770(a)(16) False disparagement of competitor's goods Lying about competitor's products to steer sales

CLRA Notice Requirement

30-Day Notice Required: Before suing for damages under CLRA, you MUST send written notice via certified mail giving defendant 30 days to cure. Failure to provide notice = dismissal of damages claims.

Exception: No notice required to seek injunctive relief only.

CLRA Remedies

  • Actual damages: Out-of-pocket losses
  • Restitution: Return of money paid
  • Punitive damages: If defendant acted with fraud, oppression, or malice
  • Injunctive relief: Court orders to stop deceptive practices
  • Attorney fees: One-way fee shifting - prevailing plaintiff recovers fees; defendant doesn't recover if they win

Lanham Act - 15 U.S.C. Section 1125(a)

Federal False Advertising Standard

The Lanham Act prohibits commercial advertising that:

  1. Misrepresents the nature, characteristics, qualities, or geographic origin of goods, services, or commercial activities
  2. In commercial advertising or promotion
  3. That deceives or is likely to deceive consumers
  4. The misrepresentation is material (likely to influence purchasing decision)
  5. Plaintiff has been or is likely to be injured as a result
Primary use: Lanham Act claims are most commonly brought by competitors harmed by false advertising, not individual consumers. However, a consumer class action may incorporate Lanham Act claims, and state law claims (FAL/UCL/CLRA) are often stronger for individual consumers.

Lanham Act Remedies

  • Injunctive relief
  • Actual damages or defendant's profits
  • Costs of the action
  • Attorney fees in "exceptional cases"
  • Treble damages in some circumstances

Evidence Checklist for False Advertising Claims

Critical principle: Successful false advertising claims require documentation of the false statement and proof that you relied on it when making your purchase decision. Gather evidence immediately - advertisements change, websites update, and receipts get lost.

The False Advertisement Itself

Primary Evidence to Capture

  • Screenshots of website claims: Capture full page with URL visible, date stamp, and specific false claims highlighted
  • Print advertisements: Magazine ads, newspaper ads, flyers, mailers (keep originals)
  • Social media posts: Screenshot posts, stories, ads with timestamps; use archive.org if post deleted
  • Email marketing: Save promotional emails showing false claims (include headers)
  • TV/Radio commercials: Record if possible; note date, time, channel, exact claims made
  • In-store signage: Photograph signs, displays, price tags, promotional materials
  • Packaging claims: Photograph product labels, boxes showing false statements
  • Sales representative statements: Document what was said, when, by whom (get in writing if possible)

How to Preserve Digital Evidence

Best Practices for Screenshots:

  1. Full page capture: Include browser URL bar showing web address
  2. Date verification: Use browser developer tools to show page metadata, or include computer clock in screenshot
  3. Wayback Machine: Check archive.org for historical versions of website claims
  4. Video recording: Screen record while navigating through checkout process to show what claims were visible
  5. Multiple captures: Screenshot the same page on different dates to show ongoing false claims
  6. PDF saves: Save webpage as PDF (includes URL and date)

Your Purchase and Reliance

Transaction Documentation

  • Receipt or invoice: Proof of purchase with date, amount, item description
  • Credit card/bank statement: Showing charge from merchant
  • Order confirmation: Email or written confirmation of purchase
  • Contract or agreement: If services were involved
  • Correspondence: Emails, texts, or messages discussing the purchase
  • Account records: Online account showing purchase history

Proving Reliance

Key element: You must show the false advertising caused you to make the purchase or pay more than you otherwise would have. Evidence of reliance includes:
  • Timing: You saw the ad before (not after) purchasing
  • Materiality: The false claim related to something important to your decision
  • No other source: You learned of the product through the false advertisement
  • Price differential: You paid more because of the claimed feature/quality

Your Own Statement

Write a detailed declaration (sworn statement) describing:

  • When and where you saw the advertisement
  • What specific claims you relied upon
  • Why those claims mattered to your purchase decision
  • What you would have done differently absent the false claims
  • When you discovered the claims were false

Proof of Falsity

Types of Evidence Showing Claims Are False

  • Product testing: Lab results, independent testing showing product doesn't match claims
  • Expert analysis: Professional evaluation of product quality, authenticity, or characteristics
  • Manufacturer specifications: Official specs contradicting advertised claims
  • Ingredient/materials analysis: Testing showing actual composition differs from claims
  • Comparison products: Side-by-side comparison with genuine article (for knockoff claims)
  • Government records: FDA, USDA, EPA databases showing lack of claimed certifications
  • Industry standards: Documentation of what "professional grade" or "premium" actually means
  • Geographic records: Import records showing "Made in USA" product was actually imported

For Specific False Advertising Types

Claim Type Evidence of Falsity
False price comparisons Historical price data from price tracking sites (CamelCamelCamel, Keepa); competitor prices; lack of evidence item was ever sold at "original" price
Bait-and-switch Ad showing specific product; evidence product was never available or immediately "sold out"; pattern of similar complaints (BBB, Yelp)
Quality misrepresentation Product testing; expert opinion; manufacturer specs showing lower grade than advertised
Origin misrepresentation Import records; manufacturer location; supply chain documentation
Fake reviews Analysis showing review patterns (same language, timing); evidence of paid reviews; FTC enforcement actions
Hidden fees Screenshots of advertised price vs. checkout total; documentation of mandatory fees not disclosed upfront

Pattern Evidence (Strengthens Your Case)

Other Consumer Complaints

  • BBB complaints: Search Better Business Bureau for similar complaints against company
  • Online reviews: Yelp, Google, Amazon reviews describing same false advertising
  • Social media: Twitter, Facebook, Reddit posts from other affected consumers
  • Consumer forums: Product-specific forums discussing deceptive practices
  • News articles: Media coverage of company's false advertising
  • Government actions: FTC, state AG, or other enforcement actions against company
  • Class action lawsuits: Existing litigation alleging similar false advertising
Why pattern evidence matters: If you can show the business has engaged in the same false advertising repeatedly, it:
  • Demonstrates the practice is intentional, not accidental
  • Supports punitive damages (malice/oppression)
  • May justify class action treatment
  • Increases settlement pressure
  • Makes your claim more credible

Evidence Preservation Tips

Act quickly: False advertising evidence disappears fast. Websites change, ads expire, social media posts get deleted. Preserve evidence immediately upon discovering false advertising.
  • Screenshot everything now: Don't wait until you decide whether to pursue a claim
  • Use multiple preservation methods: Screenshots + PDF saves + video recording
  • Store securely: Cloud backup, email to yourself, external drive
  • Document chain of custody: Note when and how you captured each piece of evidence
  • Don't alter originals: Keep unedited versions; make copies for annotation

Damages and Remedies

Overview: California false advertising laws provide several types of remedies. The right combination depends on which statutes you pursue and what relief you seek.

Restitution (Primary UCL Remedy)

What Is Restitution?

Restitution is the return of money or property that the defendant wrongfully obtained from you through unfair practices. Under UCL, restitution is the primary monetary remedy available to private plaintiffs.

Calculating Restitution

Scenario Restitution Measure Example
Product worthless Full purchase price Paid $500 for "gold" jewelry that's brass - recover $500
Product overpriced Difference between price paid and actual value Paid $100 for "premium" item worth $40 - recover $60
Wouldn't have bought Full purchase price (if you would not have bought but for false claim) "Made in USA" claim induced purchase; imported product worth nothing to you - recover full price
Hidden fees Amount of undisclosed fees Advertised $100, charged $150 with hidden fees - recover $50
Limitation: UCL restitution is limited to money or property the defendant obtained from you. It does not include consequential damages (lost profits, emotional distress) or punitive damages.

Actual Damages (CLRA)

What Are Actual Damages?

Under CLRA, you can recover actual damages - your out-of-pocket losses caused by the false advertising.

Components of Actual Damages

  • Purchase price: What you paid for the falsely advertised product/service
  • Consequential losses: Additional expenses caused by the false advertising
  • Replacement costs: Cost to obtain what you were promised elsewhere
  • Lost value: Diminished value of what you received vs. what was promised
  • Incidental expenses: Shipping, return costs, time off work, etc.

Example Calculation

Scenario: False "Waterproof" Claim

Facts: Bought $200 "waterproof" camera based on advertising. Camera failed when exposed to water, destroying vacation photos and the camera.

Actual Damages:

  • Camera purchase price: $200
  • Memory card with lost photos: $50
  • Replacement camera (actually waterproof): $300
  • Express shipping to receive before trip: $25
  • Total actual damages: $575

Punitive Damages (CLRA)

When Available

CLRA allows punitive damages when the defendant acted with fraud, oppression, or malice:

  • Fraud: Intentional misrepresentation or concealment with intent to deceive
  • Oppression: Despicable conduct subjecting plaintiff to cruel and unjust hardship
  • Malice: Conduct intended to cause injury or despicable conduct with willful disregard for rights of others

Evidence Supporting Punitive Damages

  • Defendant knew claims were false when made
  • Pattern of similar false advertising (repeat offender)
  • Ignored previous complaints about same false advertising
  • Internal documents showing knowledge of falsity
  • Continued false advertising after being notified
  • Previous enforcement actions for same conduct
Multiplier effect: Punitive damages are typically calculated as a multiple of actual damages. Courts consider the reprehensibility of conduct, ratio to actual damages, and defendant's financial condition. Ratios of 2-4x actual damages are common; higher ratios require especially egregious conduct.

Injunctive Relief

What Is Injunctive Relief?

A court order requiring the defendant to:

  • Stop: Cease making false advertising claims
  • Correct: Issue corrective advertising or disclosures
  • Disgorge: Give up profits from false advertising (in some cases)

When to Seek Injunctive Relief

  • False advertising is ongoing (business still making false claims)
  • You want to protect other consumers from same deception
  • You want to file CLRA claim without waiting for 30-day notice period
  • Business refused to stop after demand letter
Strategic use: Under CLRA, you can sue for injunctive relief immediately (no 30-day notice required), then amend complaint to add damages claims after notice period expires.

Attorney Fees

CLRA One-Way Fee Shifting

Section 1780(e): "The court shall award court costs and attorney's fees to a prevailing plaintiff..."

This is one-way fee shifting:

  • If you win: Defendant pays your reasonable attorney fees
  • If you lose: You generally don't pay defendant's fees (unless lawsuit was frivolous)

Why This Matters

  • Makes small claims viable: $3,000 dispute might generate $15,000 in attorney fees - defendant's exposure is much larger than dispute amount
  • Contingency arrangements: Attorneys more willing to take cases knowing fees are recoverable
  • Settlement pressure: Defendant faces paying your lawyer on top of damages

UCL - No Fee Shifting

UCL does not provide for attorney fee recovery (each side pays their own). This is why combining UCL with CLRA claims is strategically important - CLRA provides the fee-shifting mechanism.

Summary of Remedies by Statute

Remedy UCL 17200 CLRA 1750 Lanham Act
Restitution Yes Yes Yes (disgorgement)
Actual Damages No Yes Yes
Punitive Damages No Yes (fraud/malice) No (but treble damages possible)
Injunctive Relief Yes Yes Yes
Attorney Fees No Yes (prevailing plaintiff) Exceptional cases only
Pre-Suit Notice Not required Required for damages Not required

Sample Demand Letter Language

Purpose: Use these sample paragraphs to draft your false advertising demand letter. Customize based on your specific facts, the type of false advertising, and the statutes you're invoking.

Complete False Advertising Demand Letter Template

[Your Name]
[Your Address]
[City, State ZIP]
[Email]
[Phone]

[Date]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Tracking No.: _______________

[Business Name]
Attention: Legal Department / General Counsel
[Business Address]
[City, State ZIP]

Re: Demand for Correction of False Advertising Practices and Restitution

Dear [Business Name]:

This letter constitutes formal notice under California Civil Code Section 1782 of violations of the Consumers Legal Remedies Act, and demands correction of false advertising practices in violation of California Business and Professions Code Sections 17200 and 17500.

I. FACTUAL BACKGROUND

On [date], I purchased [product/service description] from [business name] for $[amount]. My purchase was induced by your advertising, which represented that [describe the specific false claim - e.g., "the product was 'Made in the USA,'" "the item was 'professional grade,'" "the original price was $X," etc.].

I have since discovered that this representation was false. [Describe how you discovered the falsity and what the truth actually is - e.g., "The product label indicates it was manufactured in China," "Independent testing reveals the product is consumer-grade, not professional-grade," "Price tracking data shows the item was never sold at the claimed 'original' price," etc.].

[If applicable, describe additional facts showing pattern of deception, other complaints, etc.]

II. LEGAL VIOLATIONS

Your conduct violates multiple California consumer protection statutes:

A. False Advertising Law (Bus. & Prof. Code Section 17500)

Your advertisement contained statements that were untrue and misleading, made with knowledge or constructive knowledge of their falsity, with intent to induce consumers to purchase your product/service. Specifically, [cite specific false claims].

B. Unfair Competition Law (Bus. & Prof. Code Section 17200)

Your false advertising constitutes "unlawful" business practices (violating Section 17500), "unfair" practices (causing substantial consumer injury without offsetting benefit), and "fraudulent" practices (likely to deceive reasonable consumers).

C. Consumers Legal Remedies Act (Civ. Code Section 1770)

Your conduct violates the following CLRA provisions:

  • Section 1770(a)(5): Representing that goods have characteristics, uses, or benefits they do not have
  • Section 1770(a)(7): Representing that goods are of a particular standard, quality, or grade when they are of another
  • [Add applicable subsections based on your facts: (a)(2) for false certification claims, (a)(9) for bait-and-switch, (a)(13) for false price claims, etc.]

III. DAMAGES

As a direct result of your false advertising, I have suffered the following damages:

  • Purchase price paid: $[amount]
  • [If applicable] Cost difference between advertised value and actual value: $[amount]
  • [If applicable] Consequential damages (replacement costs, etc.): $[amount]
  • Total damages: $[sum]

IV. DEMAND

Pursuant to Civil Code Section 1782, I demand that within thirty (30) days of your receipt of this notice, you:

  1. Provide full restitution of $[amount] for my losses;
  2. Cease all false and misleading advertising regarding [the specific claims at issue]; and
  3. Implement corrective measures to prevent future false advertising.

V. CONSEQUENCES OF FAILURE TO CURE

If you fail to provide appropriate correction and remedy within 30 days, I will pursue all available legal remedies, including:

  • Civil action under the CLRA seeking actual damages, restitution, punitive damages (given the willful nature of the false advertising), and attorney fees and costs under Section 1780(e);
  • Claims under the UCL (Section 17200) and FAL (Section 17500) for restitution and injunctive relief;
  • Complaints to the California Attorney General, FTC, and applicable regulatory agencies;
  • Referral of this matter to class action counsel, as your false advertising practices appear to affect numerous consumers.

The CLRA's one-way attorney fee provision means your litigation exposure will substantially exceed the amount in dispute. I encourage you to resolve this matter promptly.

VI. RESERVATION OF RIGHTS

This letter is provided to comply with CLRA Section 1782 pre-suit notice requirements. Nothing herein waives any claims, defenses, or remedies under state or federal law.

Please contact me at [email/phone] within 30 days to arrange resolution.

Sincerely,

[Your Signature]
[Your Typed Name]

Enclosures:

  • Copy of receipt/proof of purchase
  • Screenshots of false advertising
  • Evidence of falsity
  • [Other supporting documentation]

Specific Language for Common Scenarios

Bait-and-Switch

Your advertisement dated [date] prominently featured [specific product] at a price of $[amount]. When I visited your [store/website] on [date] to purchase this item, I was informed it was "no longer available" / "just sold out." Your sales representative then attempted to sell me [different, more expensive product] at $[higher amount].

This conduct constitutes classic "bait-and-switch" advertising prohibited by Civil Code Section 1770(a)(9), which bars "advertising goods or services with intent not to sell them as advertised." The pattern of this practice - [describe evidence of pattern, such as similar online complaints, repeated "out of stock" claims, etc.] - demonstrates the requisite intent.

False Price Comparisons

Your advertisement represented that [product] was "regularly $[inflated amount]" and offered at a "sale price" of $[amount paid]. This representation is false. Price tracking data from [source, e.g., CamelCamelCamel, Keepa] shows that this item has never been sold at $[inflated amount]. The purported "discount" is fictitious.

This conduct violates Civil Code Section 1770(a)(13), which prohibits "making false or misleading statements of fact concerning reasons for, existence of, or amounts of price reductions." It also violates Business and Professions Code Section 17501, which specifically prohibits false former price advertising.

False Quality/Grade Claims

Your advertising represented [product] as "[claimed quality - e.g., 'professional grade,' 'commercial quality,' 'premium,' 'medical grade']." This representation is materially false. [Describe evidence: "Independent testing by [lab/expert] confirms the product is [actual quality]" / "The manufacturer's own specifications classify this as [lower grade]" / "Industry standards define '[claimed term]' as requiring [characteristics], which this product lacks."]

This misrepresentation violates Civil Code Section 1770(a)(7), which prohibits "representing that goods or services are of a particular standard, quality, or grade... if they are of another."

False Origin Claims

Your advertising and product labeling represented that [product] was "[claimed origin - e.g., 'Made in USA,' 'Italian leather,' 'Japanese steel']." This representation is false. [Describe evidence: "Customs records show the product was imported from [actual country]" / "The product label indicates manufacture in [actual location]" / "Chemical analysis confirms the materials are [actual composition], not [claimed composition]."]

This false origin claim violates Civil Code Section 1770(a)(2), which prohibits "misrepresenting the source, sponsorship, approval, or certification of goods or services," and Section 1770(a)(5), which prohibits misrepresenting the characteristics of goods.

Hidden Fees

Your advertisement prominently displayed a price of $[advertised amount] for [product/service]. However, at checkout, I was charged $[actual amount], which included $[fee amount] in undisclosed "[fee name - e.g., 'service fee,' 'resort fee,' 'processing fee']." These mandatory fees were not disclosed in your advertising and only appeared at the final stage of purchase.

This practice of "drip pricing" or "hidden fees" constitutes false advertising under Business and Professions Code Section 17500 and unfair business practices under Section 17200. By advertising a price that consumers cannot actually obtain, you deceive consumers about the true cost of your offerings.

Fake Reviews/Testimonials

My purchase decision was influenced by customer reviews and testimonials displayed on your website. I have since discovered that these reviews are false, misleading, or undisclosed paid endorsements. [Describe evidence: "Multiple reviews contain identical language suggesting they were written by the same person" / "Reviews reference product features that don't exist" / "Investigation revealed reviews were posted by company employees" / "Paid endorsers failed to disclose their material connection to your company as required by FTC guidelines."]

The use of fake, fabricated, or undisclosed paid testimonials constitutes false advertising under Business and Professions Code Section 17500 and deceptive practices under Civil Code Section 1770(a)(4).

Next Steps After Sending Demand Letter

Overview: Sending a demand letter is the first formal step in pursuing your false advertising claim. Understanding the process and timeline helps you make strategic decisions.

The CLRA 30-Day Timeline

Day 1: Send Notice

  • Print and sign demand letter
  • Make copies of letter and all enclosures for your records
  • Go to post office; request Certified Mail with Return Receipt (green card)
  • Record tracking number on your copy of the letter
  • Pay fee (approximately $8-10)

Days 2-7: Confirm Delivery

  • Track delivery at usps.com using tracking number
  • Note delivery date (this starts the 30-day clock)
  • Save green card when it returns with recipient signature
  • Mark Day 30 and Day 31 on your calendar

Days 7-30: Negotiation Window

  • Business may contact you to negotiate - be prepared
  • Evaluate any cure offers against "appropriate remedy" standard
  • Document all communications (save emails, take notes of calls)
  • Do not accept conditional settlements without legal review (NDAs, releases)
  • Continue gathering additional evidence if available

Day 31+: Decision Point

If business provided appropriate cure:
  • CLRA damages claims are cut off
  • Accept the remedy; matter resolved
  • You can still seek injunctive relief if false advertising continues to harm others
If no cure or inadequate cure:
  • You can now file lawsuit for damages under CLRA
  • Combine with UCL/FAL claims for maximum leverage
  • Consider small claims court (up to $10,000) or superior court
  • Consult attorney about contingency representation

Filing Complaints with Government Agencies

California Attorney General

The CA Attorney General's Office investigates and prosecutes false advertising violations. Filing a complaint:

  • Online: oag.ca.gov consumer complaint form
  • What happens: AG reviews complaints for patterns; may investigate if multiple complaints or significant harm
  • Timeline: AG investigations take months to years; don't rely on this for personal recovery
  • Benefit: Creates official record; may prompt AG enforcement action; strengthens your case

Federal Trade Commission (FTC)

The FTC enforces federal laws against deceptive advertising.

  • Online: reportfraud.ftc.gov
  • What happens: FTC compiles complaint data; takes action against widespread or egregious violators
  • Limitation: FTC doesn't resolve individual disputes or get your money back
  • Benefit: Pattern data may trigger FTC enforcement; consent decrees can provide consumer redress

Better Business Bureau (BBB)

  • Online: bbb.org complaint form
  • What happens: BBB forwards complaint to business; requests response; mediates
  • Benefit: Many businesses respond to BBB complaints to maintain rating; creates public record
  • Limitation: BBB has no enforcement power; resolution depends on business cooperation

Industry-Specific Regulators

Industry Regulator False Advertising Issues
Automotive CA Dept. of Motor Vehicles, Bureau of Automotive Repair Dealer advertising violations, odometer fraud
Real Estate CA Dept. of Real Estate False property advertising, broker misrepresentation
Healthcare Products FDA, CA Dept. of Public Health False health claims, unapproved medical devices
Food & Beverages FDA, USDA, CA Dept. of Food and Agriculture False organic claims, misleading nutrition labels
Financial Services CFPB, CA DFPI Deceptive lending advertising, hidden fees
Insurance CA Dept. of Insurance False coverage claims, misleading policy advertising

Litigation Options

Small Claims Court (Up to $10,000)

Best for: Claims under $10,000 where you want to represent yourself.
  • Filing fee: $30-$75 depending on claim amount
  • No lawyers: Individuals cannot be represented by attorneys in CA small claims
  • Fast: Cases heard within 30-70 days of filing
  • Informal: Judge hears both sides; no formal rules of evidence
  • Limitation: Cannot recover attorney fees (you're not paying attorney)
  • Limitation: Businesses can appeal to superior court for new trial

Superior Court

For claims over $10,000 or when you want full remedies including attorney fees:

  • Limited civil: $10,001 - $25,000 (simplified procedures)
  • Unlimited civil: Over $25,000 (full discovery, motion practice)
  • Attorney recommended: Complex procedural rules; attorney representation advisable
  • Fee recovery: CLRA allows recovery of attorney fees if you prevail
  • Timeline: 12-24 months to trial (many cases settle earlier)

Class Action Consideration

When to consider class action:
  • False advertising affected many consumers (not just you)
  • Individual damages are small but aggregate harm is significant
  • Common questions of law and fact predominate
  • Class action attorneys may take case on contingency

How to explore: Contact consumer rights law firms specializing in class actions; they evaluate cases for class potential.

Credit Card Dispute (Chargeback)

When to Use

If you paid by credit card, you may have chargeback rights under the Fair Credit Billing Act:

  • Time limit: Generally must dispute within 60 days of statement showing charge
  • Grounds: "Goods or services not as described" is valid chargeback reason
  • Process: Contact card issuer; explain false advertising; provide evidence
  • Limitation: Purchase must exceed $50 and be within 100 miles of billing address (some exceptions)
Strategy note: Credit card disputes are separate from CLRA claims. You can pursue both simultaneously, but if you receive chargeback, your damages may be reduced (you got your money back already). Document the chargeback attempt regardless - it shows good faith effort to resolve.

Attorney Services for False Advertising Claims

Why Hire an Attorney for False Advertising Claims

False advertising claims involve multiple overlapping statutes, technical procedural requirements (CLRA notice), and strategic decisions about which theories to pursue. An attorney maximizes your recovery and handles the complexity.

Services I Provide

Case Evaluation

  • Advertising analysis: Review ads, marketing materials, and product claims to identify false statements
  • Statutory mapping: Identify which laws were violated (FAL, UCL, CLRA, Lanham Act)
  • Damages assessment: Calculate restitution, actual damages, and potential punitive damages
  • Evidence evaluation: Assess strength of evidence; identify gaps to fill
  • Strategy recommendation: Advise on best path forward (demand letter, small claims, litigation, class action referral)

Demand Letter Preparation

  • CLRA-compliant notice: Draft notice meeting all Section 1782 requirements
  • Statutory citations: Precisely identify violated provisions of each applicable law
  • Damages documentation: Itemize losses with supporting evidence
  • Strategic tone: Balance aggressive posture with settlement invitation
  • Proper service: Handle certified mailing and proof of delivery

Negotiation and Settlement

  • Response evaluation: Analyze defendant's cure offer for adequacy
  • Counter-proposals: Negotiate improved settlement terms
  • Conditional cure challenges: Reject improper conditions (forced arbitration, NDAs, broad releases)
  • Settlement documentation: Draft or review settlement agreements

Litigation (If Settlement Fails)

  • Complaint drafting: File CLRA, UCL, and FAL claims in superior court
  • Discovery: Subpoena internal documents, marketing materials, sales data
  • Expert witnesses: Retain experts for product testing, industry standards, damages
  • Motion practice: Defeat defendant's motions to dismiss or compel arbitration
  • Trial or settlement: Litigate to verdict or negotiate favorable resolution

Fee Structure

Demand letter package: Flat fee $450-650

Hourly rate: $240/hr for additional work

Contingency: 33-40% of recovery (no recovery = no fee)

CLRA fee advantage: If we prevail, defendant pays reasonable attorney fees on top of your recovery. This often means your net recovery is unaffected by legal fees.

When to Hire Counsel

  • Dispute value over $5,000: Attorney fee leverage makes litigation economically viable
  • Complex false advertising: Multiple types of false claims, technical products, expert testimony needed
  • Corporate defendant: Businesses with legal departments take attorney letters more seriously
  • Pattern of violations: Potential class action or public interest case
  • Prior attempts failed: You sent informal demand, got ignored or rejected
  • Arbitration clause: Need strategy to avoid or challenge forced arbitration

Case Example: $18,000 Recovery for False "Professional Grade" Claims

Facts: Client purchased $6,000 "professional grade" camera equipment based on advertising claims. Equipment was actually consumer-grade, failing repeatedly during professional shoots. Client lost two client contracts worth $8,000.

Claims:

  • CLRA Section 1770(a)(7) - misrepresenting quality/grade
  • CLRA Section 1770(a)(5) - misrepresenting characteristics
  • UCL Section 17200 - unlawful and fraudulent business practices

Process:

  • Sent CLRA 30-day demand for $14,000 (purchase price + lost contracts)
  • Defendant offered $2,000 "goodwill" refund - rejected as inadequate
  • Filed superior court complaint Day 31
  • Discovery revealed internal emails showing company knew claims were false
  • Defendant faced $14K damages + punitive damages + $20K+ attorney fees

Result: Settled for $18,000 (full damages plus premium for strong evidence). Defendant paid attorney fees separately: $12,000. Client net recovery: $18,000.

Schedule a Consultation

Discuss your false advertising claim with an attorney experienced in California consumer protection law. I'll evaluate your evidence, identify the strongest legal theories, and develop a strategy to maximize your recovery.

Contact: owner@terms.law

Received this type of letter? See our Response Guide →