False Advertising & Deceptive Business Practices
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False Advertising & Deceptive Business Practices
Understand Your Rights.
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Understanding the California Consumer Legal Remedies Act (CLRA)
Every day in California companies take advantage of consumers, customers and average people with their false and deceptive business practices. To try to put an end to these practices and protect innocent consumers, the California legislature enacted the Consumer Legal Remedies Act (CLRA), California Civil Code 1750. The CLRA is a powerful piece of legislation designed to protect consumers from unfair and deceptive business practices. This is a set of laws that prohibits companies from engaging in 24 specific types of false, misleading, deceptive and fraudulent practices. The CLRA provides a broad range of protections and remedies for consumers who have been misled or harmed by businesses. If a company engages in one of the illegal acts, it must pay damages to the consumer that was harmed and can face an injunction from the courts that force it cease its specific practice.
Key Provisions of the CLRA
The CLRA is codified in the California Civil Code, Sections 1750-1784. It applies to transactions involving the sale or lease of goods or services to consumers for personal, family, or household purposes. The act covers a wide range of deceptive practices, providing consumers with the means to seek redress and hold businesses accountable.
Prohibited Practices Under the CLRA
The CLRA specifically prohibits a variety of unfair and deceptive practices. Some of the key prohibited practices include:
Making false or misleading statements about the nature, quality, or characteristics of goods or services.
Representing that goods or services have characteristics, uses, benefits, or quantities that they do not have.
Advertising goods or services with the intent not to sell them as advertised, or to switch consumers to more expensive or different products.
Failing to disclose material facts about goods or services, particularly those that would influence a consumer’s decision to purchase.
Misrepresenting the terms of a warranty or guarantee.
Advertising goods or services with the intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
Representing that goods or services are sponsored, approved, or affiliated with another when they are not.
Representing that a price reduction is due to a sale or special offer when it is not.
These practices are just a few examples of the types of conduct prohibited by the CLRA. The act is designed to cover a broad spectrum of deceptive practices, ensuring comprehensive protection for consumers.
What are some examples of false or deceptive business practices?
Companies engage is so many of these bad acts that it is impossible to list them all. Some of these practices are really deceptive and obvious. Other times, their practices are clever and are sneaky, so an average consumer won’t even realize they were taken advantage of. Below are some common examples to help understand.
This is when a company says a product has a certification or sponsorship when it does not. For example if an auto dealer advertises a car as certified preowned, when really it is not. There is a certain criteria the vehicle has to meet to be “certified” pre-owned. But if the car doesn’t actually meet the criteria it doesn’t have the certification, even though the dealer tells you it does.
This occurs often when a company make certain claims that a product has some connection with a certain place. For example, if a company that sells bottled water claims that water comes from the purest, untouched mountains in the Switzerland, when if reality they bottle water from some other place. Or if a cheese company advertises their cheese as being French when it is actually made in US dairies.
This is a very common practice manufacturers use. In the simplest terms it is when they tell you a product has certain qualities or characteristics when that is not true. For example a frying pan advertised as being 100% stainless steel, but in reality it is not 100% stainless steel. Or a juice company that claims its juice is made from only fresh apples when it actually is not. Or a skin cream that states it will eliminate wrinkles when there is no proof or testing to support that claim.
This is another common trick that companies use to get you to come to the store to buy something and then they change it on you. For example if a company advertises a complete stereo system and then when you go to the store to buy it they tell you all the parts and pieces actually don’t come with it and you have to pay extra for them.
This is another common trick. Companies will advertise something at a really low price and they know customers will swarm to their store to buy it. But the company only intends to sell a few of those items at that sale price and then everyone else has to pay a higher price. This happens a lot during Black Friday.
Another unethical and illegal trick companies use is to advertise a special deal or discount. But when you go to the store you find out the rebate, discounter or promotion comes with strings attached. In other words, you don’t automatically receive it, like advertised. There is some other step or action needed on your part to get it. For example you might have sign up for something or provide them with personal information or purchase something else. This practice is prohibited.
Your Rights Under the CLRA
If you are a victim of false and deceptive business practices or advertisements, the CLRA provides several important rights and remedies:
Consumers have the right to file a lawsuit against businesses that violate the CLRA. This can be done individually or as part of a class action.
Consumers can seek actual damages, which include compensation for any financial losses suffered as a result of the deceptive practices. In some cases, consumers may also be entitled to punitive damages, which are intended to punish particularly egregious conduct.
Consumers can seek injunctive relief, which is a court order requiring the business to stop the deceptive practices and take corrective action.
Consumers can seek restitution, which involves the return of any money or property obtained by the business through deceptive practices.
The CLRA allows consumers to recover attorney’s fees and court costs, making it more feasible for individuals to pursue legal action against businesses.
Our Firm’s Commitment to Protecting Consumer Rights
At Assassi & Cruz, we are dedicated to protecting the rights of consumers and holding businesses accountable for deceptive practices. Our team of experienced attorneys has a deep understanding of the CLRA and a proven track record of successfully representing clients in consumer protection cases. The California Consumer Legal Remedies Act is a vital tool for protecting consumers from unfair and deceptive business practices. If you believe you have been a victim of such practices, it is important to understand your rights and take action to seek compensation. We are committed to advocating for consumers and ensuring that businesses are held accountable for their actions. If you need assistance with a consumer protection issue, we encourage you to contact us for a comprehensive evaluation of your case. Together, we can ensure that your rights are protected and that justice is served.
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