False, deceptive, and unfair advertising is illegal. Each of these terms are defined by law, subject to multi-part tests, and interpreted by regulations and case law. Both the Federal Trade Commission and the Massachusetts Attorney General act to enforce Federal and State laws prohibiting unfair or deceptive acts or practices. In addition, aggrieved consumers may assert claims for breach of contract or violation of the Consumer Protection Act. Statements made in advertisements could ultimately amount to express warranties that become part of the contract later consummated between the advertiser and the consumer.
Are salesmanship, hyperbole and "dealer's talk" strictly prohibited by these laws? While a seller may have some latitude in "puffing" his goods or services and may express an opinion about them, the seller may not misrepresent the goods or services or assign to them benefits that they do not possess. The difficulty arises in delineating what constitutes aggressive, but legal, salesmanship, and what crosses the line to misrepresentation of facts or statements made for the purpose of deceiving prospective purchasers.
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