OUTSMART THE MAD MEN – Consumer Rights Under California’s Deceptive Pricing and False Advertising Laws
As a consumer, you deserve transparency and honesty when making purchasing decisions. Unfortunately, false advertising is rampant, leading to frustration, financial loss, and sometimes even harm.
California has some of the strongest consumer protection laws in the country, and at R23 Law, our team of California False Advertising Consumer Lawyers is dedicated to helping you fight back against deceptive business practices.
What Constitutes False Advertising in California?
False advertising occurs when a company misrepresents the nature, quality, or price of its products or services to lure consumers into making a purchase. California’s Business and Professions Code § 17500 prohibits advertising that is false or misleading in any way. This law applies across all forms of advertising—whether print, online, or otherwise. Simply put, if a business lies about a product or fails to disclose crucial information, they may be held liable.
Examples of false advertising include:
Misleading price discounts (e.g., promoting a sale price that was never the original price)
Fake product reviews or testimonials
Hidden fees that are not disclosed upfront
Advertisements for “free” products with strings attached
Bait-and-switch tactics, where a product is advertised at a low price, but the consumer is directed to a higher-priced item
These are just a few examples, but the legal landscape around advertising is vast and complex. If you feel you’ve been misled by a business, it’s essential to speak with a lawyer to understand your rights.
PHANTOM DISCOUNTS – Can a Sale Price Be Advertised Forever?
A good example of false advertising violations that many businesses employ is false markdowns/discounts.
Many consumers love a good bargain, but it’s important to know that not all sales are legitimate. Under California Business and Professions Code § 17501, businesses are prohibited from advertising a sale price for more than three months unless the item was actually sold at the higher, “original” price during that time. After three months, if the product is continuously advertised at a lower price, that “sale” price essentially becomes the regular price. Continuing to advertise it as a discount or special offer could be considered false advertising.
California law is clear: to advertise a product as “on sale,” the original price must have been the prevailing market price within the 90 days before the sale started. Businesses that falsely claim an item is “on sale” when it hasn’t been sold at the higher price are misleading consumers, which can result in fines or legal action. The Federal Trade Commission (FTC) enforces similar rules on a national level.
If you’ve ever seen a product advertised as “on sale” for months on end and wondered if the discount was real, there’s a good chance it wasn’t. This kind of deceptive pricing strategy not only hurts consumers but also undermines fair competition. At R23 Law, our California False Advertising Consumer Lawyers are committed to holding businesses accountable for these misleading practices. If you’ve purchased an item based on a false sale price, you could be entitled to compensation.
The Laws Protecting You
California’s laws, particularly the Unfair Competition Law (UCL) and the Consumers Legal Remedies Act (CLRA), provide a way for consumers to hold businesses accountable. The UCL covers a wide range of deceptive business practices, while the CLRA focuses specifically on protecting consumers from fraud and misleading advertising. Both of these laws offer robust protections and remedies, including:
Injunctions: Courts can order businesses to stop engaging in false advertising.
Monetary Compensation: You may be entitled to financial compensation for any losses you’ve suffered as a result of false advertising.
Class Actions: If a large group of consumers has been misled by the same deceptive practices, a class action lawsuit may be an option.
California Business and Professions Code § 17500 also makes false advertising a criminal offense, punishable by fines or even jail time in egregious cases. This further emphasizes the seriousness of the issue and the state’s commitment to protecting consumers.
Why Does False Advertising Matter?
False advertising doesn’t just hurt your wallet—it undermines trust and fairness in the marketplace. When businesses use deceptive tactics, they create an uneven playing field and harm competitors who follow the rules. Additionally, misleading advertisements can leave consumers with products that don’t meet their expectations, causing disappointment, financial strain, or worse.
Take, for example, cases where companies advertise a sale price that was never actually offered. Such “phantom discounts” are illegal under California law. In one well-known case, JCPenney faced a class-action lawsuit for advertising false reference pricing, where they offered “discounts” on products that were never actually sold at the original price .
R23 Law’s California False Advertising Consumer Lawyers are here to help!
R23 Law’s California False Advertising Consumer Lawyers have extensive experience in protecting consumers just like you. We understand the complexities of California’s advertising laws and can help you navigate the process of holding businesses accountable. Whether you’re dealing with hidden fees, misleading claims, or deceptive “on-sale” pricing, our team is here to fight for your rights.
What makes R23 Law Special?
Experience: We’ve handled numerous false advertising cases and have a deep understanding of California’s UCL and CLRA.
Commitment: We are passionate about protecting consumers and ensuring that businesses play by the rules.
No Upfront Fees: We offer free consultations, and many cases are handled on a contingency basis, meaning you don’t pay unless we win.
What Should the Consumer Do Next to Protect Yourselves?
At R23 Law, we understand the frustration and financial harm that false advertising can cause. Our team of California False Advertising Consumer Lawyers is dedicated to ensuring that businesses are held accountable and that you receive the compensation and justice you deserve.
Contact R23 Law today for a free consultation. We’ll review your situation and help you determine the best course of action. Call us now or fill out the form on our website to get started.
