Can False Advertising Lead to Criminal Charges?
Generally, false advertising is addressed through civil rather than criminal actions. Only if the charge involves a distinct intention to seriously defraud or mislead consumers will a criminal charge attach to false advertising. South Carolina takes the matter of deception for financial gain seriously, and if you’re facing a false advertising charge, an experienced Greenville, SC, white-collar crime attorney at Ryan Beasley Law is standing by to help.
False Advertising and White-Collar Crimes
White-collar crimes refer to offenses that are financially motivated. They are often perpetrated in the business arena and tend to involve fraud or deceit rather than violence.
False advertising is the illegal trade practice of employing false, misleading, or otherwise deceptive information in the promotion of consumer goods or services. Prime examples include all the following:
- Pricing that is misleading
- Failure to disclose relevant information
- Misrepresentation of the product or service’s capabilities, characteristics, or quality
These are considered unfair trade practices, which makes them illegal. When false advertising involves intentional deception for the financial gain of the entity involved, it crosses the line from a civil charge to a white-collar crime.
The Elements Required
For false advertising to be charged as a white-collar crime, there are specific elements that must apply.
Financially Motivated
To begin, the business entity or its representative must have been financially motivated. This generally means using deceptive claims to attract clients, which translates to increased profits.
Deceptive Intentions
Additionally, the business entity’s intentions must have been deceptive rather than misguided, incorrect, or confusing. In other words, they intended to deceive their audience.
Market Manipulation
False advertising is deemed an unfair trade practice because it affords companies that engage in it an unfair edge over their competitors who stick to legal practices, which include truth in advertising.
When each of these is present, false advertising can be charged as a white-collar crime.
Common Examples
Common examples of when false advertising can be charged as a crime include each of the following:
- Promises about a product’s specific capabilities, such as the promotion of weight loss, when there are none
- Manipulation of the data to make a product seem safer or more effective than it is
- Claiming that a product is organic, or anything else that appeals to consumers, when it isn’t
Fines and Penalties
The fines and penalties associated with criminal false advertising depend on several factors. These include the unique circumstances involved, the level of fraud perpetrated, and the severity of the consequences experienced by those consumers who engaged.
A conviction can carry steep fines, restitution, the forfeiture of assets, probation, or even jail or prison time.
Reach Out to an Experienced Greenville White Collar Crime Lawyer
Ryan Beasley at Ryan Beasley Law is a formidable Greenville white-collar crime attorney who will spare no effort in pursuit of your case’s best possible resolution. Your future is important, so please don’t wait to contact us online or call us at 864-756-4204 today.