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Business sanctioned for misleading advertising

PLEASE NOTE: Information in this article is correct at the time of publication, please contact DFA Law for current advice on older articles.

Businesses should be made aware that making misleading claims in their advertising is illegal. The High Court, in judicial review proceedings, has recently held that the Advertising Standards Authority (ASA) was entitled to find that a company had breached the British Code of Advertising for misleading advertising.

The company, which buys and sells classic cars, made advertising claims that their business had been trading since 1919. However, the company had a chequered trading history that included several liquidations and had operated in various corporate guises over the years. The ASA considered that in light of their trading history, the claim that their business had been trading since 1919 was misleading as it suggested incorrectly to the consumer that they were financially stable.

There are numerous other ways that a business can be in breach of advertising laws and regulations. Our checklist highlights the main issues a business should consider before launching an advertising campaign.

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