AdvertisingFalse Advertising in General
Section § 17500
This law makes it illegal for anyone to advertise products, services, or anything else using statements that are untrue or misleading. It covers all forms of advertising, including newspapers, internet, and public announcements. If someone knowingly, or by not being careful, makes a false claim to sell goods or services, they can be charged with a misdemeanor. Penalties might include up to six months in jail, a fine of up to $2,500, or both.
Section § 17500.1
This law states that trade or professional groups and state bodies under the Department of Consumer Affairs cannot create rules that stop businesses or professionals from advertising, as long as the ads follow Section 17500 and other laws. However, this does not apply to rules made according to Section 6076, which can still restrict advertising.
Section § 17500.3
This law makes it illegal for someone to try to sell goods or services at a person's home, either in person or by phone, without clearly stating up front that they are trying to make a sale. They must reveal their identity, who they represent, and what they are selling. If they visit in person, they must also show identification with their business address. The law also forbids using tricks or false pretenses during the sales pitch. If someone breaks these rules intentionally, the buyer can seek damages, which means getting compensation. The buyer must first ask in writing for the contract to be canceled and for any payments to be refunded. If the seller refuses within 20 days, then double damages may be claimed, with a minimum of $50. Moreover, businesses need to keep any contract cancellation demands on file for a year. If a seller claims not to know about a violation, they might avoid penalties, but only if they couldn't have known with reasonable care. This rule doesn't apply to non-profit charities or certain other sales, and local governments can pass stricter laws if they want.
Section § 17500.5
This law makes it illegal to advertise something as available in a certain quantity for sale to one customer and then not mention any actual limits on those quantities. If a customer is misled by such an ad and is refused the advertised item at the advertised price, the business must pay the customer any costs incurred plus $50. The law doesn't affect a seller's right to refuse credit or apply to customers buying items to resell. Also, you can't use this law in group lawsuits; it only applies to individual lawsuits.
Section § 17500.6
This law makes it illegal for sellers of digital goods to advertise or sell these goods with terms like "buy" or "purchase" if the buyer is merely getting a license to use the item, rather than actually owning it, unless certain conditions are met. Sellers must clearly inform customers, either through an acknowledgment or a conspicuous statement, that they are purchasing a license, not ownership, and detail any access restrictions. These notices must be distinct from other agreement terms. The law doesn’t apply to subscription services, free offers, or items that can be permanently downloaded and used offline without an internet connection.
Section § 17501
This law section explains that when something is advertised, the worth mentioned should match the current market price in that area—wholesale price if offered wholesale, or retail price if offered retail. Additionally, if an old price is shown, it must have been the market price within the last three months before the ad came out, or the ad must clearly state when that old price was accurate.
Section § 17502
This law section says that if a radio station, internet service provider, online service, or publisher of something like a newspaper or magazine runs an ad in good faith and doesn't know that the ad is false or misleading, they're not breaking the law.
Section § 17504
If a business in California sells products or services that are only available in multiple units and advertises these items, it must show the price of the smallest set of units available. However, it can advertise the price per single unit if the smallest set price is also clearly shown. This applies to goods and services used mainly for personal, family, or household purposes, excluding food.
Section § 17505
This law says you can't lie in ads about being a producer, manufacturer, or wholesaler, or about owning a factory or supply source if that's not true. Also, you shouldn't mislead people about the size or type of your business in any way.
Section § 17505.2
This law makes it illegal for someone to call themselves a recreation therapist or claim their services are recreation therapy unless they have a degree in recreation therapy or a similar field and are certified or eligible for certification. An uncertified person can't use specific titles or abbreviations related to recreation therapy in their business names or advertising. If someone breaks this law, others can sue and possibly recover money for damages at $1,500 for the first violation and $2,500 for each one after. This money is the only compensation allowed for such violations.
Section § 17506
In this section, the term “person” refers to any individual, group of partners, business, organization, or company.
Section § 17506.5
This law defines some specific terms used in its chapter. When it refers to a "board within the Department of Consumer Affairs," it's talking about any group or agency within that department, like a commission or bureau. A "local consumer affairs agency" is any city or county group that mainly offers services to protect consumers.
Section § 17507
This law makes it illegal for any business or person to make a price-related advertising claim that covers more than one product or service in the same category if it's not clear which specific product or service the price applies to. Simply using an asterisk or symbol with a footnote to explain is not enough, especially if there's no picture representing the product or service.
Section § 17508
This law makes it illegal for businesses in California to make false or misleading advertising claims. If a business makes advertising claims purportedly based on facts or compares their product to others, they must provide proof of these claims if asked by certain officials. If they fail to provide this evidence, officials can take steps to stop or change the claims, or inform the public about their misleading nature, taking care to protect trade secrets. The law also specifies that newspapers and broadcasters aren't liable for false claims unless they make them themselves. If sued, the person bringing the case must prove the violation. It also clarifies that if one advertisement violates two specific sections, the penalties only apply to one of those sections.
Section § 17509
This law requires that if an advertisement over the Internet or otherwise is selling or leasing a product or service that requires buying or leasing another product or service, it must clearly show the prices of everything involved. However, there are exceptions for certain subscription or membership plans where the seller sends a form for consumers to opt-out of receiving certain goods. These plans must clearly state how a customer can refuse items, any minimum purchase obligations, cancellation rights, and additional fees for postage and handling. The rule doesn't apply to media entities like newspapers or broadcasters who unknowingly publish such ads.