Understanding California’s False Advertising Law

Consumers in California–and just about everywhere else–face a daily assault of flashy deals, online promotions, and marketing campaigns promising big savings. But not every advertisement tells the full story. So, to protect the public from misleading or deceptive practices, California has enacted some of the strongest advertising regulations in the nation. One of the most important is the False Advertising Law (FAL).

This law is designed to ensure that companies are honest in the way they promote goods and services. Whether it is a misleading discount, an inaccurate product description, or a hidden limitation buried in fine print, businesses that cross the line can face significant legal consequences.

What California Law Prohibits

California’s False Advertising Law makes it unlawful for a business to disseminate any statement that is untrue or likely to mislead. This includes advertisements published online, in print, on television, on billboards, and even on product packaging. The standard is not whether the advertiser intended to deceive but whether the message would mislead a reasonable consumer. Examples include:

• Claiming a product is “100% organic” when it is not certified as such.

• Advertising “no fees” but adding unavoidable charges at checkout.

• Suggesting a limited-time offer when the deal is ongoing indefinitely.

• Comparing a product to a competitor’s in a way that distorts facts.

Because the statute is broad, nearly any communication used to promote a sale could be scrutinized.

How Enforcement Works

The law may be enforced in several ways:

1. Public Enforcement – The California Attorney General and district attorneys have authority to bring actions against businesses engaged in false or misleading advertising. Government actions can result in civil penalties, injunctions to stop unlawful conduct, and restitution to consumers.

2. Private Lawsuits – Consumers who are misled by unlawful advertising may bring claims through California’s Unfair Competition Law (UCL), which incorporates violations of the FAL. These suits often seek restitution, injunctive relief, and, in class actions, recovery for large groups of consumers harmed in the same way. Contact our legal team to review your case. 

Legal Remedies Available

A company found liable for false advertising can face serious consequences, including:

• Civil penalties imposed by government prosecutors.

• Restitution requiring repayment of money obtained through misleading ads.

• Injunctions that prohibit further deceptive advertising campaigns.

• Attorneys’ fees in some consumer actions, especially when paired with other statutes like the Consumers Legal Remedies Act.

In class action cases, the financial exposure for businesses can be substantial, as restitution may apply to thousands of consumers at once.

Proving a Violation

Courts typically look at whether a “reasonable consumer” would likely be deceived. Plaintiffs do not need to show that every person was misled—only that a significant portion of the targeted audience could have been. Evidence might include screenshots, copies of ads, purchase receipts, or testimony about how the consumer relied on the representation when making a buying decision.

Importantly, even technically true statements may be unlawful if they are presented in a way that creates a false impression. For example, a product advertised as “50% off” could still be misleading if the “original price” was inflated and rarely charged.

Why the Law Matters

Truthful advertising fosters trust in the marketplace. When companies distort the truth, they gain an unfair advantage over honest competitors and undermine consumer confidence. The FAL helps level the playing field by holding businesses accountable for the promises they make.

For consumers, the law offers a path to recover money spent on deceptive deals. For businesses, compliance is not optional; misleading promotions can quickly become the basis for costly litigation and reputational harm.

Why Hire The Lyon Firm

Navigating California’s advertising and consumer protection laws is no small task. False advertising cases often involve technical evidence, multiple statutes, and aggressive defense tactics by corporations. Having an experienced advocate is essential.

The Lyon Firm has built a reputation for representing consumers and individuals in complex litigation, including fraud, deceptive practices, and false advertising claims. The firm’s approach emphasizes both legal skill and client support—helping people not only pursue financial recovery but also hold companies accountable for misleading conduct. When you work with The Lyon Firm, you gain a team that:

• Understands how businesses design and promote deceptive marketing campaigns.

• Uses legal tools to obtain internal documents, advertising records, and consumer data.

• Pursues individual cases and class actions to maximize recovery.

• Provides clear guidance and personal attention throughout the process.

If you believe you were misled by an advertisement in California, The Lyon Firm can evaluate your claim, explain your options, and take action to protect your rights.

FAQs on California Consumer Rights

1. Do I have to prove the company intended to deceive me?
No. Under California law, the focus is on whether the advertisement would likely mislead a reasonable consumer, not whether the business acted in bad faith.

2. Can a group of consumers join together in a case?
Yes. Class actions are common in false advertising disputes, especially when the same misleading message reached thousands of people.

3. What if the ad was technically true but left out important details?
Omissions or half-truths can still be unlawful. Courts recognize that an incomplete message can be just as deceptive as an outright lie.

4. Are online businesses treated differently than brick-and-mortar stores?
No. The False Advertising Law applies broadly to digital and physical advertising alike. Whether the misrepresentation is on a website, mobile app, or store shelf, the same legal standards apply.

5. How long do I have to bring a claim?
Deadlines vary depending on the statute invoked, but many false advertising claims must be filed within a few years of the incident. Consulting a consumer protection attorney early ensures you preserve your rights.