What is a false or misleading claim in advertising?

Consumers are entitled to substantial protections against false or misleading claims for advertisements. This means that deceptive advertising of products is illegal. At law, no business or company is allowed to make false, misleading or deceptive claims regarding their products or services.

The correct price, quality and purpose should be disclosed to the consumers as consumers have the right to be able to make an informed decision regarding the product that they wish to purchase.

Any consumer who has been victims of false advertising or has been misled into obtaining a product that they say is not fit for purpose should contact an experienced lawyer at Executive Legal. We like to think that we are one of the best law firms in Sydney and it is important that people only work with experienced lawyers (particularly if you are in the Sydney area) who are experts in what they do. A consumer who has been wronged needs to find out about their rights and what actions need to be taken.

Any published claims that are not truthful or are misleading can be forms of false advertising. Deceptive advertising gives consumers an incorrect idea of the product that they are considering buying or using. The brands that are utilising false claims regarding their product can result in the customer suffering a financial loss and may enliven other forms of damage.

There are cases wherein the loss or damage of a customer by virtue of such a claim is not significant. In some instances, the false representations may only be a few dollars or some inconvenience. However, our firm strives to protect and represent consumers as we believe that this is not a cost that any consumer should have to endure because of a false claim in an advertisement.

If you are a consumer who has suffered losses or damages due to misleading claims then depending upon the type of damage and the consequences, the class of litigants may participate in a class action lawsuit to recover compensation for any losses or damages that you may have incurred. We invite you to reach out to us to ensure that you would be getting the compensation that you deserve.

 

The Pental Case study

(Australian Competition and Consumer Commission v Pental Limited [2018] FCA 491)

Full judgement can be found here: https://jade.io/j/?a=outline&id=583190

Pental Limited (‘Pental’) is a company which specialises in a variety of cleaning and household products. It is the manufacturer of White King wet wipes and is one of the contributors to the sewerage system problem that Australia is experiencing. This is because of their claims that White King Wipes are flushable when they are actually non-biodegradable. This was a material misrepresentation for which a declaration was made by consent.

Ultimately, there was a fine levied upon Pental Limited of $700,000 for their contraventions of the Australian Consumer Law.

 

Where do we go from here?

The fine that the Federal Court has imposed on Pental, does not only affect this one company. This has a rippling effect on other manufacturers who carry flushable wet wipe products.

It is still not clear whether there will be a curb in the manufacturing of these wipes or if this occurrence will only stop business from claiming that their wipes are “flushable” and “biodegradable”.

Advertising is a persuasion tool that is used to convince consumers into buying products or using services that they might ignore or avoid in normal circumstances. This is why there are laws made that protect the consumers’ rights to know what they are paying for whether it is a product or a service.

Know and fight for your rights. If you have been a victim of false or misleading advertising, feel free to get in touch with Executive Legal, one of the best law firms in Sydney.

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