Press Release: Businesses warned of the legal dangers of false advertising

Extravagant advertising claims could land businesses in hot water if they get their facts wrong, a local legal expert has warned.

An increasing number of businesses are making bold claims in their advertising as they battle to attract customers during the credit crunch.

But John French, of Band Hatton, has warned that if a claim is contested, a company faces losing substantial amounts of money – along with their reputation.

Internet shopping site Ebay has recently been rapped by the Advertising Standards Authority (ASA) for claiming its site had new items ‘25 per cent’ cheaper than the high-street.

When the claim was investigated and found to be false, ASA forced the site to scrap the advertising campaign – costing them thousands of pounds.

French is now warning smaller businesses not to fall into the trap of making sweeping statements.

He said: “The Ebay case highlights the dangers involved in making such a strong claim.

“In today’s difficult economic climate, companies know that customers are looking for best value – and making price-comparison advertising is extremely attractive.

“But unless the advertisement is factual, suddenly a firm can see all the money they’ve spent creating and producing adverts wasted, their company criticised and even being liable in some cases to pay compensation as well as legal costs.

“If a business is uncertain about the validity of a claim it is planning to make, it is always sensible to take professional legal advice before committing to it – whether through an in-house lawyer or a local firm. That way they are covering themselves if someone complains.”

For more information, call John French on 02476 632121.

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