False advertising doesn't just deceive consumers—it steals customers and revenue from honest businesses that tell the truth about their products and services. When competitors lie about their offerings, make impossible promises, or deceive consumers about quality, origin, or endorsements, they gain unfair advantages that corrupt fair competition. The Los Angeles false advertising lawyers at Tauler Smith LLP represent businesses whose sales have been diverted by competitors' deceptive marketing. We pursue claims under the Lanham Act, California's False Advertising Law, and related statutes to stop deceptive practices and recover the profits stolen through lies.
When Competitors' Lies Steal Your Customers
Every industry has companies that resort to deception when they can't compete on merit. They claim capabilities their products don't have, certifications they haven't earned, or endorsements that don't exist. They manipulate test results, cherry-pick data, or simply fabricate performance metrics. They advertise sale prices that were never real, compare their products to strawmen, or hide critical limitations in microscopic disclaimers. Each false claim that persuades a customer to choose their product over yours represents theft of business you earned through honest competition.
The digital age has amplified both the reach and sophistication of false advertising. Competitors buy fake reviews that make inferior products appear superior. They create deceptive websites that mimic independent review sites while actually promoting their own products. They use targeted advertising to spread lies about your products to your own customers. They manipulate search results, create false comparison charts, and use deepfakes or unauthorized testimonials. The speed and scale of digital deception can destroy years of reputation building in weeks.
False "Made in USA" claims particularly harm domestic manufacturers who bear the higher costs of American production. When competitors falsely claim American origin while actually importing from low-cost countries, they steal patriotic consumers while avoiding the expenses you incur supporting American workers. Similarly, false "organic," "natural," or "eco-friendly" claims allow competitors to capture premium prices without meeting costly certification requirements. These origin and quality misrepresentations don't just harm individual competitors—they destroy consumer trust in entire categories.
Building Powerful False Advertising Cases
Successful false advertising claims under the Lanham Act require proving that the defendant made false or misleading statements of fact in commercial advertising that actually deceived or had tendency to deceive a substantial segment of the audience, and that you were likely harmed by the deception. The statements must be material—the kind that influence purchasing decisions. Courts treat literally false claims differently from misleading ones, with literally false claims requiring no evidence of consumer confusion while misleading claims need consumer survey evidence.
California's False Advertising Law (Business and Professions Code Section 17500) and Unfair Competition Law provide overlapping protection with some advantages over federal claims. These statutes reach broader conduct, don't require competitor standing in all cases, and can provide different remedies including restitution and injunctive relief. The statutes work together—a violation of the False Advertising Law automatically constitutes unfair competition under Section 17200.
Proving falsity often requires expert testimony explaining why claims are wrong or misleading. Scientific experts debunk false performance claims. Industry experts explain why certifications are meaningful and what's required to earn them. Forensic accountants demonstrate that claimed savings are illusory. Survey experts design and conduct consumer perception studies showing that reasonable consumers are deceived by the advertising. This expert testimony transforms technical falsity into compelling narratives judges and juries understand.
Exposing Deceptive Marketing Schemes
Comparative advertising that falsely disparages your products while promoting competitors' requires special attention. When competitors claim their products outperform yours, they must have substantiation for those claims. Through discovery, we obtain their testing data, methodology, and internal communications that often reveal they knew their claims were false or misleading. Side-by-side comparisons that manipulate testing conditions, use outdated versions of your products, or compare apples to oranges all create liability.
Bait-and-switch advertising lures customers with promises of products that don't exist or aren't actually available at advertised prices. Online retailers advertise impossibly low prices to appear first in price comparisons, then claim products are out of stock while pushing higher-priced alternatives. Service providers advertise low base prices while hiding mandatory fees that double or triple actual costs. These deceptive pricing practices violate both false advertising laws and specific pricing statutes.
Fake endorsement schemes have proliferated online. Competitors create fake expert websites that recommend their products. They pay influencers for endorsements without requiring disclosure. They quote selectively from reviews to reverse meanings. They claim awards from pay-to-play organizations or simply invent accolades. Each false endorsement that diverts customers creates liability for both the advertiser and potentially the endorser.
Quantifying Damages from False Advertising
False advertising damages can be enormous but require careful proof. Lost profits must account for sales diverted by false advertising while controlling for other market factors. Price erosion occurs when false advertising forces you to lower prices to compete with lying competitors. Corrective advertising costs compensate for expenses needed to counter false claims in the marketplace. Your advertising becomes less effective when competitors' lies create confusion, requiring increased spending for the same results.
The Lanham Act allows recovery of defendant's profits from false advertising, which can exceed your losses. This disgorgement prevents unjust enrichment and deters future false advertising. When false advertising is willful, courts can enhance damages and award attorney's fees, which often exceed underlying damages. These fee-shifting provisions level the playing field, allowing smaller companies to challenge larger competitors' deceptive practices.
Injunctive relief may be more valuable than damages, particularly for ongoing false advertising campaigns. Courts can order competitors to cease false advertising, issue corrective advertising, modify packaging or websites, and implement compliance programs. Preliminary injunctions can stop false advertising campaigns within weeks of filing suit, preventing further damage while cases proceed. The threat of injunctions that would require expensive changes to marketing materials often motivates quick settlements.
Industry-Specific False Advertising
Different industries face unique false advertising challenges. In the dietary supplement industry, unsupported health claims, fake doctor endorsements, and manipulated before/after photos deceive vulnerable consumers while stealing sales from legitimate products. Technology companies make false compatibility claims, exaggerate capabilities, or hide critical limitations. Food companies make false origin claims, health claims, or quality representations that command premium prices.
Professional service providers who falsely claim credentials, experience, or success rates harm both consumers and legitimate practitioners. Construction companies that claim licenses, insurance, or qualifications they lack underbid honest contractors. Financial services that promise impossible returns or hide risks destroy trust in entire sectors. Each industry has specific regulations and standards that inform false advertising analysis.
Contact the Los Angeles False Advertising Attorneys at Tauler Smith LLP
Based in Downtown Los Angeles, we help businesses throughout California combat competitors' false advertising. When lies and deception threaten your sales and reputation, our attorneys know how to prove falsity, demonstrate harm, and recover damages. We understand that false advertising isn't just about money—it's about protecting the integrity of marketplace competition.
Call 310-590-3927 or submit our online form to discuss how we can stop competitors' false advertising and recover your losses.