Unfair Competition and Deceptive Trade Practices

Put a Stop to False Advertising

California’s two primary statutes in this field are the general false advertising statute (Bus. & Prof. Code § 17500) and the unfair competition statute (Bus. & Prof. Code § 17200). Both of these statutes are govererned by many of the principles of section 5 of the FTC Act (15 U.S.C. § 45).

Section 17500 states:

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 … to make or disseminate … any statement 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."

The standard for both FTC Act section 5 and Business and Professions Code section 17500 is the "tendency or capacity to deceive" test; a violation occurs if there is the tendency or capacity of deception or condusion arising from the statement at issue. (Kasky v. Nike, Inc. (2002) 27 Cal.4th 939, 951)