False Advertising Question (California)

[monazore]

Under California law, would it be considered false advertising if a company fabricated or significantly altered the founder’s personal origin story, while providing truthful information about the product's development and origin?

 

[Zigner]

Under California law, would it be considered false advertising if a company fabricated or significantly altered the founder’s personal origin story, while providing truthful information about the product's development and origin?

No.

 

[quincy]

Under California law, would it be considered false advertising if a company fabricated or significantly altered the founder’s personal origin story, while providing truthful information about the product's development and origin?

Possibly.

 

[quincy]

California Business and Professional Code, sections 17505 and 17508:

https://law.justia.com/codes/california/code-bpc/division-7/part-3/chapter-1/article-1/section-17505/

https://law.justia.com/codes/california/code-bpc/division-7/part-3/chapter-1/article-1/section-17508/

What is the reason for your question?

 

[zddoodah]

As the question is phrased, yes. Section 17500 of the California Business and Professions Code:

"It is unlawful for any person, firm, corporation or association, or any employee thereof with intent directly or indirectly to dispose of real or personal property or to perform services, professional or otherwise, or anything of any nature whatsoever or to induce the public to enter into any obligation relating thereto, to make or disseminate or cause to be made or disseminated before the public in this state, or to make or disseminate or cause to be made or disseminated from this state before the public in any state, in any newspaper or other publication, or any advertising device, or by public outcry or proclamation, or in any other manner or means whatever, including over the Internet, any statement, concerning that real or personal property or those services, professional or otherwise, or concerning any circumstance or matter of fact connected with the proposed performance or disposition thereof, 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, or for any person, firm, or corporation to so make or disseminate or cause to be so made or disseminated any such statement as part of a plan or scheme with the intent not to sell that personal property or those services, professional or otherwise, so advertised at the price stated therein, or as so advertised."

Emphasis added to make that horrible run-on sentence a bit easier to digest.


Why do you ask?

 

[Zigner]

As the question is phrased, yes. Section 17500 of the California Business and Professions Code:

"It is unlawful for any person, firm, corporation or association, or any employee thereof with intent directly or indirectly to dispose of real or personal property or to perform services, professional or otherwise, or anything of any nature whatsoever or to induce the public to enter into any obligation relating thereto, to make or disseminate or cause to be made or disseminated before the public in this state, or to make or disseminate or cause to be made or disseminated from this state before the public in any state, in any newspaper or other publication, or any advertising device, or by public outcry or proclamation, or in any other manner or means whatever, including over the Internet, any statement, concerning that real or personal property or those services, professional or otherwise, or concerning any circumstance or matter of fact connected with the proposed performance or disposition thereof, 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, or for any person, firm, or corporation to so make or disseminate or cause to be so made or disseminated any such statement as part of a plan or scheme with the intent not to sell that personal property or those services, professional or otherwise, so advertised at the price stated therein, or as so advertised."

Emphasis added to make that horrible run-on sentence a bit easier to digest.


Why do you ask?

I'm not sure that the "origin story" of the founder of a company is relevant, particularly when "information about the product's development and origin" is truthful.

With that said, I can see how some might argue that, for example, one might not want to buy a product, no matter how wonderful the product is, if the founder of the company has values that differ from their own. I think it would be very fact-specific, and a tough thing to convince a court of (if needed). I would say that @quincy's answer of "Possibly" may be a better response than my original answer.

 

[adjusterjack]

as part of a plan or scheme with the intent not to sell that personal property or those services, professional or otherwise, so advertised at the price stated therein, or as so advertised."

I don't think aggrandizement of the founder is going to rise to that level.

That's my two cents worth.

 

[Zigner]

I don't think aggrandizement of the founder is going to rise to that level.

That's my two cents worth.

Agreed on that, but that's not the applicable part.

 

[quincy]

A founder’s qualifications can entice someone to invest in a company or purchase a product. The founder might be more likely to face questions of fraud rather than false advertising but I can see where a founder’s false claims about himself could affect the value of the company or the product.

 

[zddoodah]

Having litigated false advertising claims in CA, I can assure you that it's certainly possible. Of course, the facts matter, and we have no specifics.

 

[quincy]

Yes. Facts would be nice.

The best advice to anyone thinking of fabricating or embellishing their personal background information for any reason is “don’t.” The falsehoods are almost always discovered. Self-inflicted wounds to your own reputation are not easily healed.

 

[Lucasjame]

Under California law, would it be considered false advertising if a company fabricated or significantly altered the founder’s personal origin story, while providing truthful information about the product's development and origin?

The best thing you can do is to consult with the lawyer.

 

[quincy]

The best thing you can do is to consult with the lawyer.

Or not lie about your background. Not lying is less costly.