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Can Business Name Be Considered False or Misleading Advertising?

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truemtn

Junior Member
What is the name of your state (only U.S. law)? California


Hi, I want to make a new website business called "Best-Investment-Homes.com" (name slightly changed) but I'm worried that consumers may sue me for making exaggerated claims with the word "Best".

Is it ok to use this name? Am I required to post disclaimers that "Best" is just a personal opinion? Should I even be worried at all...?

Thank you much in advance.
 


quincy

Senior Member
What is the name of your state (only U.S. law)? California


Hi, I want to make a new website business called "Best-Investment-Homes.com" (name slightly changed) but I'm worried that consumers may sue me for making exaggerated claims with the word "Best".

Is it ok to use this name? Am I required to post disclaimers that "Best" is just a personal opinion? Should I even be worried at all...?

Thank you much in advance.
First, anyone can sue anyone else for pretty much any reason at all, so there is always going to be a slight risk of a lawsuit. The best anyone can ever do is reduce the risk as much as possible (and take out insurance when circumstances may warrant this extra protection).

In the case of your business name, however, if there is no other business operating under the same or a confusingly similar name, you have a very low risk of being sued over your business name. The word best, like the word greatest, is considered an opinion. Consumers understand that the word is subjective and cannot be proved true or false. It is just puffery.

Where you potentially run into problems is with words that can be measured. When words compare one business or one product or one service with another, and the words can be proved true or false, then this can lead to claims of false advertising if there is not sufficient evidence to back up the claims. For example, Penzoil was sued by Castrol when Penzoil claimed their motor oil provided longer engine life, better engine performance and "outperformed any leading motor oil against viscosity breakdown." Because these were claims that could be (and were) proved false, Castrol won their suit.

When you are starting any new business, it is always smart to sit down with an attorney to review your business plans in advance, to ensure that legal issues are addressed prior to start up. It is almost always less expensive to prevent a suit with careful planning than to have to defend against one that arises for lack of planning.

Good luck. :)
 

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