
Whether you are a consumer trying to find the best deal or a business owner creating a new marketing campaign, honesty is the best policy. In Utah, it’s also the law.
Welcome to a closer look at Utah Code Chapter 11a, which officially covers “Truth in Advertising”. The main purpose of this chapter is to prevent deceptive, misleading, and false advertising practices and forms within Utah. Let’s break down what this legislation covers, what it prohibits, and how it protects consumers.
What Exactly Is an “Advertisement”?
Under this law, an advertisement is considered to be any written, oral, or graphic statement or representation made by a supplier in connection with the solicitation of business.
- It includes communication by noncable television systems, radio, printed brochures, newspapers, leaflets, flyers, circulars, billboards, banners, or signs.
- It does not include any oral, in-person representation made by a sales representative to a prospective purchaser.
Common Deceptive Trade Practices
The statute outlines numerous actions that qualify as deceptive trade practices. If a person is engaging in their business they are violating the rules if they do any of the following:
- Pass off goods or services as those of another.
- Represent that goods or services are of a particular quality when they are not.
- Cause likelihood of confusion or misunderstanding as to the source, sponsorship, approval, or certification of goods or services.
- Represent that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or second-hand.
- Advertise goods or services with the intent not to sell them as advertised.
- Advertise goods or services with intent not to supply a reasonable and expected public demand. Unless the advertisement clearly and conspicuously discloses a limitation of quantity or the person issues rainchecks.
- Make false or misleading statements of fact concerning price reductions. This includes falsely using expressions like “going out of business,” “bankruptcy sale,” or “final sale”.
The “Truth in Music” Clause
One of the more unique aspects of this chapter is a section dedicated entirely to “Truth in music advertising”.
This section states that a person may not advertise or conduct a live musical performance by using a false, deceptive, or otherwise misleading affiliation between a performing group and a recording group of the same name. There are a few common-sense exemptions to this rule. For instance, the law does not apply if the performance is clearly identified in all advertising and promotional materials as a salute or tribute. It is also exempt if at least one member of the performing group was a member of the recording group and has a legal right to use the group’s name.
Enforcement and Penalties
So, what happens when a business breaks the rules?
- Any person or the state may bring an action in court to enjoin a continuance of the violating act.
- In addition to injunctive relief, the plaintiff is entitled to recover the amount of actual damages sustained or $2,000, whichever is greater.
- The court shall award attorney fees to the prevailing party.
- The court may order the defendant to promulgate corrective advertising by the same media and with the same distribution and frequency as the violating ad.
It is important to note that no action for injunctive relief may be brought unless the complaining person first gives notice to the prospective defendant. They must provide them an opportunity to promulgate a correction notice. If the prospective defendant does not issue a correction notice within 10 days of receiving the notice, the complaining person may file a lawsuit.
Protect Your Business and Your Rights with Attorney David Head
Navigating the complexities of advertising law or dealing with a competitor who relies on deceptive practices can be overwhelming. If you are a consumer who has been financially harmed by false advertising, you don’t have to face the legal system alone.
Attorney David Head has the experience and dedication needed to protect your interests.
Don’t let misleading advertising hurt your bottom line or your consumer rights. Contact the law office of Attorney David Head today to schedule your consultation.