When can a business be sued by the government for false advertising in Nashville?

Nashville, TN – There were news reports that national retailer Home Depot would have to pay out millions after a false advertising case [1].

Home Depot overcharged customers and engaged in deceptive practices

Home Depot has agreed to a nearly $2 million settlement following a civil complaint filed by multiple California district attorneys. The complaint accused the home improvement retailer of engaging in false advertising and unfair competition, with specific allegations surrounding “scanner violations.” These violations occurred when customers were charged a higher price at checkout than what was displayed on store shelves.

As part of the settlement, Home Depot will pay $1.7 million in civil penalties and an additional $277,251 to cover investigation costs and future enforcement of consumer protection laws. Although the company did not admit to any wrongdoing, it cooperated with the investigation, according to the Los Angeles County District Attorney’s Office.

Los Angeles County District Attorney George Gascón emphasized the severity of false advertising and unfair competition, noting that such practices erode consumer trust and distort market fairness. He added that deceptive practices not only harm consumers but also provide unethical businesses with an unfair advantage over competitors who operate transparently.

The settlement requires Home Depot to implement a price accuracy program. This program will introduce more frequent audits, additional employee training, and a policy that eliminates price increases on weekends. These measures aim to prevent similar pricing discrepancies in the future.

The settlement comes shortly after Home Depot agreed to pay $750,000 in early July to resolve a separate lawsuit regarding non-compliance with California’s gift card laws. The company, while addressing the recent settlement, stated that it has updated its procedures to ensure consistent pricing for customers. This action reinforces Home Depot’s efforts to align its operations with consumer protection regulations while resolving legal issues with the state of California.

When is a business liable for false advertising in Tennessee?

In Tennessee, a business can be liable for false advertising when it engages in deceptive or misleading practices that misrepresent the nature, quality, price, or other aspects of its goods or services. False advertising is governed by both state and federal laws, including the Tennessee Consumer Protection Act (TCPA) and the Federal Trade Commission Act (FTC Act).

Under the Tennessee Consumer Protection Act, businesses are prohibited from engaging in unfair or deceptive acts or practices, including false advertising. Specifically, a business can be held liable if it makes false statements, omissions, or representations about its products or services that are likely to mislead consumers. Common examples include advertising incorrect prices, exaggerating product capabilities, or failing to disclose important information.

For a business to be found liable, the false or misleading statement must meet certain criteria:

Materiality: The false statement must be significant enough to influence a consumer’s decision to purchase the product or service.
Intent or Negligence: The business must have either knowingly engaged in false advertising or acted negligently by failing to ensure the accuracy of its advertising.
Harm to the Consumer: The consumer must have suffered a loss or injury as a result of relying on the false advertisement.

The Federal Trade Commission Act also prohibits unfair or deceptive practices in commerce, and businesses in Tennessee can face federal enforcement actions if found to violate these rules. The FTC and state authorities may impose penalties, including fines and injunctions, against businesses found liable.

Consumers who are victims of false advertising in Tennessee may also pursue civil lawsuits for damages, seeking compensation for financial losses or other harms caused by misleading advertisements.

Business attorneys in Nashville

The Law Office of George R. Fusner is a firm that handles various issues related to business lawsuits in the Nashville area.

USAttorneys.com is a service that works with people who need to find lawyers. Those who need assistance with a referral can call 800-672-3103

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com

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