Deceptive Advertising Laws in Illinois
Deceptive advertising refers to false or misleading claims made by businesses about their products or services. The goal of deceptive advertising is usually to entice consumers into making a purchase or using a service. While some exaggeration in advertising is expected, outright lying crosses the line into illegal territory in many cases.
Illinois has laws prohibiting deceptive advertising practices to protect consumers from fraud. Businesses found engaging in false advertising may face civil penalties, criminal charges, injunctions forcing them to stop, and other consequences.
Illinois Deceptive Advertising Laws
The main law dealing with deceptive advertising in Illinois is the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505). This law makes it illegal to use deception, fraud, false pretense, misrepresentation, or concealment in selling merchandise or services.
Specifically, Section 2 of the Act prohibits:
- Advertising goods or services with intent not to sell them as advertised
- Advertising goods or services with intent not to supply reasonable expectable demand
- Making false or misleading statements concerning the reasons for, existence of, or amounts of price reductions
In addition, the Criminal Code of Illinois contains a section dealing with deceptive advertising (720 ILCS 5/17-5.7). This law makes it illegal to advertise with intent to sell or purchase goods or services while knowingly failing to include key details. Prohibited practices include:
- Advertising goods or services without intent to supply reasonably expectable demand
- Advertising goods or services without intent to sell at the price or terms advertised
- Advertising goods or services with intent not to have sufficient quantity or quality to meet reasonably expectable demand
- Failing to state the identity of the product advertised
- Failing to state the quantity of the product advertised
- Failing to disclose possible exclusions or restrictions on the deal
Violating either the Consumer Fraud Act or Criminal Code carries penalties. The Attorney General, State’s Attorney, or private citizens may bring lawsuits against violators. Available remedies include injunctions, civil penalties up to $50,000 per violation, and orders to pay restitution to consumers.
The most serious deceptive advertising violations under the Criminal Code are Class A misdemeanors. Offenders may face up to 1 year in jail and $2,500 in fines. Subsequent violations become felonies subject to 1-3 years imprisonment.
Examples of Illegal Deceptive Advertising
Some common examples of illegal deceptive advertising under Illinois law include:
- Bait-and-switch – Luring in customers with amazing deals that turn out to not exist or be unavailable once the customer engages with the business. The classic bait-and-switch features deals that seem too good to be true.
- Hidden fees – Advertising one price but then tacking on mandatory fees or charges later in the purchasing process without clearly disclosing them up front. Things like “activation fees” or “delivery fees” can run afoul of the law when omitted from advertisements.
- False testimonials – Using fake positive reviews or endorsements to promote a product or service. Testimonials from satisfied customers are common in advertising but fabricating them crosses the line.
- Unsubstantiated claims – Making objective claims about a product’s benefits, features, or abilities that the advertiser cannot back up with proof. Advertisers must be able to substantiate any factual statements about their offerings.
- Fine print – Hiding major exclusions, limitations, or conditions on a deal in tiny, illegible fine print. Key details that materially affect a reasonable consumer’s purchasing decision must be conspicuously disclosed.
- Availability – Running ads creating the false impression that a certain product or service is readily available when it is actually backordered, discontinued, or unavailable for weeks or months.
- Drip pricing – Revealing additional mandatory charges slowly throughout the sales process rather than providing the full price up front. For example, showing hotel room rates without disclosing the resort fee.
- False sales – Advertising fake “sales” or “limited time offers” by falsely claiming a regular price is higher than it really is. The “original” price used as a reference point must be truthful.
Defenses to Deceptive Advertising Charges
There are some potential defenses businesses accused of deceptive advertising may raise:
- Puffery – Subjective exaggerations like “best pizza in town” or “world’s most comfortable shoes” are considered puffery. Such boasting does not constitute deception as reasonable consumers understand it is opinion rather than fact.
- Mistakes – Honest mistakes in advertising may provide a defense. However, the business must correct the error once discovered rather than allowing it to continue misleading consumers.
- Reliance on third-party information – Businesses are generally not liable for false claims or information provided to them by manufacturers, suppliers, or other parties outside their control. The advertiser must not have reason to doubt the third-party information.
- Lack of intent – Deceptive advertising requires intent to mislead on the part of the advertiser. If the deception was accidental or the result of a misunderstanding, it negates the intent requirement.
- First Amendment – The right to free speech provides some protection to advertisers. However, false or misleading commercial speech receives no protection. The government can restrict speech that deceives or defrauds consumers.
Recent Deceptive Advertising Cases in Illinois
Deceptive advertising issues frequently lead to lawsuits and settlements in Illinois:
- In 2021, the Village of Tinley Park sued a local gas station for advertising regular gasoline as “premium” to charge higher prices. The lawsuit alleges the bait-and-switch tactics violated consumer protection laws.
- In 2020, the Illinois Attorney General sued a Chicago-area car dealership for deceptive practices including advertising unavailable vehicles to lure customers. The state seeks civil penalties and an injunction.
- In 2019, Sprint agreed to pay $3.5 million to settle a class action lawsuit alleging the company failed to disclose certain fees in its advertising. Around 54,000 Illinois customers received compensation.
- In 2017, an Illinois judge ordered a national retailer to pay $3 million for violations including advertising discounted prices that were not actually discounts. The company also misrepresented product locations and availability.
- In 2016, a gym chain settled a suit alleging it failed to adequately disclose membership terms and limitations on promotions. Under the deal, the company paid $1.3 million and agreed to reform its advertising and contracts.
Protecting Your Business from Deceptive Advertising Claims
Any business that advertises to consumers should follow certain best practices to avoid deceptive advertising allegations:
- Truthfully represent your offerings and capabilities at all times – never exaggerate or mislead.
- Ensure advertising claims are backed up by evidence before publishing ads.
- Disclose all fees, exclusions, restrictions, and expiration dates clearly.
- Use fine print sparingly and make key disclosures conspicuous.
- Avoid unrealistic images or portrayals suggesting your product will perform in unrealistic ways.
- Correct any advertising errors as soon as they are discovered.
- Oversee and train marketing staff to spot potential deception issues.
- Seek legal review of advertising campaigns when unsure.
- Maintain records, data, and proof supporting claims made in advertising.
Following federal and state deceptive advertising laws protects consumers from fraud while also keeping your business out of legal trouble. No company wants to deal with lawsuits, settlements, or damage to its reputation from false advertising allegations. Investing in truthful, transparent marketing reflecting what your business actually offers is wise in the long run.
Conclusion
Deceptive advertising remains an issue in Illinois despite existing laws. Consumers should watch out for telltale signs like prices too good to be true. Businesses must walk a fine line between puffery and outright deception in promoting their offerings. Understanding state laws can help both consumers and companies advertise truthfully and legally.