📋 Overview

You've received a claim alleging false or misleading advertising. California has three overlapping statutes that regulate advertising: the False Advertising Law (FAL), the Unfair Competition Law (UCL), and the Consumer Legal Remedies Act (CLRA). Understanding which claims you face determines your defense strategy.

⚠ Multiple Statutes

False advertising claims often invoke FAL, UCL, and CLRA together. Each has different remedies and requirements.

🕒 "Likely to Deceive" Standard

California uses a "likely to deceive" test, not "actually deceived." Intent to deceive is not required.

💰 Class Action Risk

Advertising reaches many consumers, making false advertising claims prime candidates for class actions.

Key California Advertising Laws

  • FAL (BPC 17500) - Prohibits untrue or misleading statements in advertising. Remedies: injunction, restitution, civil penalties.
  • UCL (BPC 17200) - Prohibits "unfair," "unlawful," or "fraudulent" business practices. Broad catch-all statute.
  • CLRA (CC 1750) - Consumer-specific protections. Requires 30-day pre-suit notice for damages claims.
  • Lanham Act (15 USC 1125) - Federal law; competitor standing, but covers false advertising nationally.
$450
Attorney Response on Letterhead

Claim analysis, professional response letter, advertising compliance review.

Schedule Review

🔍 Evaluate the Claim

Analyze the specific advertising statement at issue and whether it's actually false, misleading, or protected opinion.

Types of Advertising Claims

Claim Type Example Risk Level
Factual claim - provably false "100% organic" when it's not certified HIGH
Misleading implication Before/after photos with undisclosed alterations HIGH
Unsubstantiated claim "Clinically proven" without studies MEDIUM
Comparative advertising "Better than [competitor]" without basis MEDIUM
Puffery/opinion "Best coffee in California" LOW

📄 Advertising at Issue

  • ✓Screenshot/copy of the ad
  • ✓When and where it ran
  • ✓Context and full disclosure
  • ✓Current version (if changed)

📝 Substantiation

  • ✓Basis for the claim made
  • ✓Studies, tests, or data
  • ✓Expert opinions if cited
  • ✓Qualification/disclaimers used

⚠ The "Reasonable Consumer" Standard

California courts ask whether a "reasonable consumer" would likely be deceived. This isn't about the most gullible or most sophisticated consumer, but an average person exercising ordinary care. Literal truth doesn't protect misleading implications.

🛡 Your Defenses

Several defenses may apply to false advertising claims. Truth is always a complete defense.

Statement Is True

If the advertising claim is literally true and not misleading in context, you win. Document your substantiation - test results, certifications, data supporting the claim.

When to use: You can prove the statement is factually accurate.

Non-Actionable Puffery

Vague, subjective opinions that no reasonable consumer would take as factual claims are protected. "Best pizza in town" is puffery. "Voted #1 by consumers" is a factual claim.

When to use: The statement is vague superlative or obvious opinion, not specific factual claim.

Clear and Conspicuous Disclaimer

If your advertising included clear qualifications or disclaimers, the overall impression may not be misleading. But disclaimers can't contradict the main message.

When to use: Prominent disclaimers clarify the claim in ways consumer would notice.

No Consumer Injury/Standing

Under UCL/FAL, private plaintiffs must show they lost money "as a result of" the advertising. If they didn't rely on the ad or suffer economic injury, they lack standing.

When to use: Plaintiff didn't see the ad, didn't rely on it, or suffered no financial harm.

Competitor Claim - No False Statement

Lanham Act claims by competitors require proving the statement is literally false or implicitly misleading AND affects purchasing decisions.

When to use: Competitor lawsuit where statement is literally true or immaterial.

🚨 Defenses That Often Fail

  • "Everyone does it" - Industry practice doesn't make false ads legal
  • "We didn't intend to deceive" - Intent not required under FAL/UCL
  • "The disclaimer explained it" - If disclaimer contradicts headline, still misleading
  • "It's technically true" - Misleading implications are still violations

⚖ Response Options

Based on your evaluation, choose the appropriate response strategy.

Fix Ad & Settle Individual

If the advertising is problematic, change it immediately and settle the individual claim. This limits class action exposure and shows good faith.

  • Stops ongoing violation
  • Reduces class action risk
  • Demonstrates good faith

Defend - Ad Is Truthful

If you have strong substantiation that the ad is true and not misleading, defend vigorously with documentation.

  • Protects your marketing
  • Deters future claims
  • Requires solid evidence

Modify & Deny Past Harm

Change the advertising prospectively but deny that the prior version was unlawful. Limits admission while reducing future exposure.

  • Compromise position
  • No admission
  • Dispute may continue

Challenge Standing

If plaintiff can't show economic injury from the specific ad, challenge their standing to sue under Proposition 64 requirements.

  • May dispose of case
  • Doesn't address merits
  • Class rep may be replaced

📊 False Advertising Litigation Cost

Example: Class action for misleading "organic" claim

Individual claimant's damages$20-100
Class size (purchasers in CA)50,000+
Potential class recovery$1-5 million
Class counsel fees (25-33%)$250k-1.5M
Your defense costs (through trial)$500k-2M
Cost to fix advertising now$1,000-10,000
EARLY FIX vs. CLASS LITIGATION$10k vs. millions

💡 CLRA 30-Day Notice Advantage

If the claim includes CLRA, they must send a 30-day pre-suit notice for damages. Use this window to cure the violation. If you cure properly, damages are barred - only injunctive relief remains available. But you must act quickly and completely.

📝 Sample Responses

Copy and customize these response templates for your situation.

Denial - Advertising Is True
We have reviewed your claim that our advertising regarding [describe claim] is false or misleading. We respectfully deny your allegations. Our advertising statement is truthful and substantiated: 1. The claim "[quote statement]" is based on [describe substantiation - testing, certification, data]. 2. [If applicable] Our advertising includes a clear disclosure stating [quote disclaimer], which provides appropriate context. 3. A reasonable consumer viewing this advertising in context would not be misled. We are confident our advertising complies with California Business and Professions Code Section 17500 and the Consumer Legal Remedies Act. We will vigorously defend any legal action. [Attach substantiation documents]
Cure & Settlement (CLRA Notice)
We acknowledge receipt of your CLRA notice dated [DATE] regarding our advertising for [PRODUCT/SERVICE]. Pursuant to Civil Code Section 1782(b), we wish to cure the alleged violation: 1. CORRECTION: As of [DATE], we have modified our advertising to [describe changes]. The revised advertising no longer contains the statement at issue. 2. RESTITUTION: We are prepared to provide you with [refund amount / store credit] to remedy any harm from the prior advertising. 3. CONFIRMATION: The challenged advertising has been discontinued on all platforms. This cure and offer is made without admission of any violation. Please confirm acceptance within 14 days.
Puffery Defense
We have reviewed your claim regarding our statement "[quote statement]." This statement constitutes non-actionable puffery - a vague, subjective claim that no reasonable consumer would interpret as a statement of fact. California courts consistently hold that general claims of superiority, quality, or desirability are opinions, not factual representations. Unlike specific, measurable claims (e.g., "FDA approved" or "reduces wrinkles by 50%"), our statement [explain why it's vague/subjective]. A reasonable consumer would understand this as marketing opinion, not a testable factual claim. See, e.g., Oestreicher v. Alienware Corp. (2009) (holding "most powerful gaming laptops" was puffery); Cook, Perkiss and Liehe, Inc. v. N. Cal. Collection Serv. Inc. (1911) (general claims of superiority not actionable). We decline your demand as the statement does not violate California advertising law.
Standing Challenge
We acknowledge your claim under the Unfair Competition Law regarding our advertising. Before addressing the merits, we note that under Proposition 64 (codified at BPC 17204), private UCL plaintiffs must demonstrate they "suffered injury in fact and have lost money or property as a result of" the challenged conduct. Please provide documentation establishing: 1. When and where you saw the specific advertisement at issue 2. How the advertisement influenced your purchasing decision 3. What economic injury you suffered as a result Without evidence of standing, we are unable to engage on the substantive claims. See Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310 (requiring proof that plaintiff actually relied on the allegedly false representation). We reserve all rights and defenses pending your response.

🚀 Next Steps

What to do after receiving a false advertising claim.

Step 1: Preserve Ad

Screenshot/save the exact advertising at issue. Note when and where it ran.

Step 2: Gather Substantiation

Pull all documentation supporting the claim - tests, studies, data, certifications.

Step 3: Assess Exposure

How many people saw the ad? Potential class size? Multiple claims incoming?

Step 4: Consider Immediate Changes

If the ad is questionable, changing it immediately limits ongoing exposure.

Advertising Compliance Best Practices

  • Substantiation first: Have proof BEFORE making claims, not after challenged
  • Clear disclosures: Qualifications should be clear, conspicuous, and nearby
  • Avoid absolutes: "Always," "never," "100%" invite challenges
  • Review by counsel: Get legal review for major campaigns

Get Professional Help

False advertising claims can become expensive class actions. Get a professional response drafted on attorney letterhead.

Schedule Consultation - $450

California Resources

  • FAL: Business & Professions Code 17500-17509
  • UCL: Business & Professions Code 17200-17210
  • CLRA: Civil Code 1750-1785
  • Lanham Act: 15 U.S.C. 1125(a) (federal false advertising)