Deceptive Advertising Law and Legal Definition

Deceptive advertising means advertising comprising of false or misleading statements. For instance, a fictitious reference about a product or service may constitute deceptive advertising. Individual liability for deceptive advertising is appropriate where the defendant was a corporate officer with the capacity to make decisions regarding the challenged conduct, and if s/he knew or should have known that there was no reasonable basis for the deceptive claims. “To determine the appropriate amount of damages in deceptive advertising cases, courts apply a burden-shifting scheme. First, the Federal Trade Commission must provide the court with a reasonable approximation of damages. Both gross receipts and net customer loss are appropriate measures. Once a reasonable approximation of damages has been provided, the defendant has an opportunity to demonstrate that the figures are inaccurate. Any fuzzy figures due to a defendant's uncertain bookkeeping cannot carry a defendant's burden to show inaccuracy.”[ FTC v. Direct Mktg. Concepts, Inc., 624 F.3d 1 (1st Cir. 2010)].