A Cautionary Tale – Recent Trends Show That False Advertising Cases Are Proliferating With the Stakes Higher Than Ever

Fitzpatrick Client Alert
July 23, 2012

There is a growing trend toward increased potential risk of litigation and significant damages for marketers who cannot adequately substantiate product benefit claims in their marketing materials and advertising. The risk comes not just from competitors, but as the cases discussed herein show, from the Federal Trade Commission (“FTC”), from state attorneys general, and from class action suits brought by contingent fee plaintiffs’ counsel on behalf of consumers. Three marketers have paid over $140 million in recent months to settle such false advertising claims.

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