That miracle weight loss pill didn’t work. The “unlimited” data plan has limits. The product looks nothing like the advertisement. False advertising is frustrating, and when it costs you money, you may wonder if you can sue. The answer depends on what was promised, what you relied on, and how much you lost.
Quick Answer
You may be able to sue a company for false advertising if you can prove the company made a false or misleading statement about its product or service, you relied on that statement when making your purchase, and you suffered damages as a result. Individual lawsuits are most practical for significant losses. For smaller amounts, class action lawsuits, state attorney general complaints, or FTC reports may be better options.
What Is False Advertising?
False advertising occurs when a company makes misleading, deceptive, or outright false claims about its products or services. This includes:
| Type | Examples |
|---|---|
| False claims | “Clinically proven to cure cancer” (when it isn’t) |
| Misleading claims | Images showing product much larger than actual size |
| Omissions | Hiding significant fees or limitations |
| Bait and switch | Advertising a low price but only selling expensive alternatives |
| False endorsements | Fake celebrity endorsements or fabricated reviews |
| Deceptive pricing | “50% off” when the original price was inflated |
Laws That Protect Consumers
Federal Trade Commission Act
The FTC Act prohibits “unfair or deceptive acts or practices” in commerce. While individuals can’t sue directly under the FTC Act, you can file complaints that may trigger FTC enforcement action.
Lanham Act
This federal law allows businesses to sue competitors for false advertising. Individuals generally can’t sue under the Lanham Act—it’s designed for business-vs-business disputes.
State Consumer Protection Laws
Every state has consumer protection laws that prohibit deceptive trade practices. These are your primary tool for individual lawsuits:
- Many allow individuals to sue directly
- Some provide for double or triple damages
- Many allow recovery of attorney fees
- Some don’t require proof of intent to deceive
Examples: California’s Unfair Competition Law, Texas Deceptive Trade Practices Act, New York General Business Law § 349.
State False Advertising Laws
Many states have specific false advertising statutes with their own remedies and procedures.
Elements of a False Advertising Claim
To win a lawsuit, you typically need to prove:
1. False or Misleading Statement
The advertisement contained a statement that was:
- Literally false, or
- Likely to mislead reasonable consumers
2. The Statement Was Material
The false claim was important enough that it influenced purchasing decisions. Minor exaggerations (“puffery”) like “best coffee in town” typically aren’t actionable.
3. You Relied on the Statement
You saw or heard the advertisement, believed it, and made your purchase based at least partly on that belief.
4. You Suffered Damages
You lost money or were harmed as a result. This could be:
- The purchase price of a worthless product
- The difference in value between what was promised and what you received
- Additional costs you incurred
- Physical injury from a product that didn’t work as advertised
Puffery vs. Actionable Claims
Not all advertising claims are legally actionable:
| Puffery (Not Actionable) | Actionable Claims |
|---|---|
| “The best pizza in the city” | “Made with 100% real cheese” (when it contains artificial cheese) |
| “You’ll love our service” | “Satisfaction guaranteed or your money back” (when refunds are refused) |
| “World-class quality” | “Contains no artificial ingredients” (when it does) |
| “The ultimate driving machine” | “Gets 40 MPG” (when it actually gets 25 MPG) |
Puffery is subjective, vague, or obviously exaggerated. Actionable claims are specific, measurable, and factual.
Types of Remedies
Individual Lawsuit
You file your own lawsuit against the company. Best for:
- Significant individual losses
- Unique circumstances not shared by others
- When you want control over your case
Class Action Lawsuit
You join other consumers who were deceived by the same advertising. Benefits:
- Share legal costs with other plaintiffs
- Makes small claims economically viable
- Greater pressure on the company
Drawbacks: Individual recoveries may be small; less control over the case.
Small Claims Court
For smaller losses (typically $5,000-$15,000 depending on state):
- No lawyer required
- Lower filing fees
- Faster resolution
- Simpler procedures
What You Can Recover
- Actual damages – Money you lost due to the false advertising
- Statutory damages – Fixed amounts set by law (in some states)
- Multiple damages – Double or triple damages in some states for willful violations
- Attorney fees – Many consumer protection laws allow fee recovery
- Punitive damages – In cases of egregious conduct
- Injunctive relief – Court order to stop the false advertising
Steps to Take
1. Document the Advertising
Gather evidence of the false claims:
- Screenshots of website claims
- Copies of print advertisements
- Photos of product packaging
- Recordings of TV/radio ads (if available)
- Emails or promotional materials
2. Keep Your Receipt and Product
Save:
- Proof of purchase
- The product itself (don’t throw it away)
- Any communications with the company
3. Try to Resolve Directly
Contact the company to request a refund or resolution. Document:
- Who you spoke with
- What was said
- The company’s response
4. File Complaints
Even if you don’t sue, file complaints with:
- FTC – ReportFraud.ftc.gov
- State Attorney General – Consumer protection division
- Better Business Bureau – May help with resolution
- Industry regulators – FDA for health claims, FCC for telecom, etc.
5. Consult an Attorney
For significant losses, consult a consumer protection attorney who can:
- Evaluate whether you have a viable claim
- Identify the best legal avenue
- Represent you in litigation
- Connect you with a class action if one exists
Frequently Asked Questions
Is it worth suing over a small amount?
For small individual losses, a class action may be better than an individual lawsuit. You can also use small claims court for amounts within its limits (typically $5,000-$15,000). Filing complaints with the FTC and state attorney general costs nothing and may result in enforcement action.
What if the fine print contradicts the advertisement?
Fine print doesn’t always protect companies. If the prominent claims are misleading and the disclaimers are hidden, unclear, or contradictory, the advertising may still be illegal. Courts consider the overall impression on reasonable consumers.
Can I sue for exaggerated claims like “best product ever”?
Probably not. Vague, subjective, or obviously exaggerated claims are considered “puffery” and aren’t actionable. Claims must be specific and factual to support a lawsuit.
How long do I have to file a lawsuit?
Statutes of limitations vary by state and claim type—typically 2-4 years from when you discovered (or should have discovered) the deception. Don’t delay in consulting an attorney.
What if the company is in another state?
You may be able to sue in your home state if the company does business there or directed advertising to your state. An attorney can advise on jurisdiction issues.
When to Contact a Lawyer
Consider consulting a consumer protection attorney if:
- You lost a significant amount of money due to false advertising
- A product caused injury because it didn’t work as advertised
- You’re aware of many others affected by the same false claims
- The company refuses to provide a refund or resolution
- You want to explore joining or starting a class action
Many consumer protection attorneys offer free consultations and take cases on contingency—you pay nothing unless you win.
Last updated: January 2025
This article provides general information about false advertising claims in the United States. Laws vary by state and individual circumstances. Consult with a qualified attorney for advice specific to your situation.
