US-CaliforniaWhat constitutes false advertising under California law?
False advertising in California includes any untrue, deceptive, or misleading statement in promoting a product or service, whether made orally, in writing, or online.
What the Law Says
California prohibits false advertising through two primary statutes: the False Advertising Law (FAL) and the Unfair Competition Law (UCL). Both define and penalize deceptive or misleading promotional claims.
The False Advertising Law (FAL), found in Business and Professions Code § 17500, makes it unlawful for any person to make or disseminate 'any statement...which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading.' This applies to ads in any medium — print, broadcast, digital, or in-person.
The Unfair Competition Law (UCL), codified in Business and Professions Code § 17200, broadly prohibits 'unlawful, unfair or fraudulent' business acts or practices. Courts have held that a violation of the FAL automatically constitutes a violation of the UCL.
Under both laws, false advertising does not require proof of intent to deceive — negligence (i.e., failure to exercise reasonable care) is enough. The statement must be likely to mislead a reasonable consumer acting reasonably under the circumstances.
Statutory TextIt is unlawful for any person, firm, corporation or association, or any employee thereof with intent directly or indirectly to dispose of real or personal property...to make or disseminate or cause to be made or disseminated...any statement...which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading.
— Bus. & Prof. Code § 17500 — False Advertising Law
Statutory TextUnfair competition shall mean and include any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising.
— Bus. & Prof. Code § 17200 — Unfair Competition Law
What Courts Have Said
California courts have clarified how false advertising claims are evaluated — focusing on consumer perception, materiality, and the role of context.
The court held that commercial speech by businesses about their own labor practices can be regulated under false advertising laws if it is factual and potentially misleading to consumers — rejecting absolute First Amendment protection for such statements.
The Ninth Circuit affirmed that packaging claims like 'natural' on fruit juice snacks were misleading to reasonable consumers, even if technically accurate, because the product contained synthetic ingredients not commonly associated with 'natural.'
What to Do
Review all advertising claims for truthfulness, clarity, and context — especially superlatives ('best,' 'pure,' 'natural') and health-related statements.
Keep records showing substantiation (e.g., testing, expert opinions, ingredient analyses) for any objective claims.
Correct misleading ads promptly and disclose corrections publicly if widely distributed.
If you’re a consumer harmed by false advertising, you may file a complaint with the CA Attorney General or pursue a private lawsuit under the UCL or FAL.
Businesses facing allegations should consult counsel immediately — remedies may include injunctions, restitution, and civil penalties up to $2,500 per violation.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.