Compensation for unfair advertising

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Compensation for unfair advertising

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Compensation for False Advertising: Legal Protection for Consumers and Court Practice

False advertising is a serious violation of consumer rights, which can mislead consumers and cause both material and moral damage. In Ukraine, legislation strictly regulates liability for such actions, granting consumers the right to seek compensation for harm caused by misleading or manipulative advertising. In this article, we will review the key aspects of compensation for false advertising, the possibility of filing lawsuits, and court practices in this area.

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What is False Advertising?

False advertising refers to information that misleads consumers or manipulates their decisions about purchasing goods or services. This could include providing false information about a product’s features, price, or sales terms. According to the Law of Ukraine "On Advertising," such advertising is prohibited and can serve as grounds for filing a lawsuit for damages.

Type of False AdvertisingDescription of ViolationPossible Consequences for Consumers
Misleading AdvertisingProviding false information about a productFinancial losses from purchasing a substandard product
Exaggerated DiscountsAdvertising fake or non-existent discountsOverpaying for a product or receiving a worse deal
False Promotional InformationManipulating promotional conditions that don’t match realityLoss of money due to missed benefits

Examples of false advertising include:

  • Advertising a product with blatantly false information about its quality.
  • Exaggerating the price or promotions that do not match actual conditions.
  • Using manipulative techniques to push consumers toward impulsive decisions.

Ukrainian legislation, specifically Article 27 of the Law "On Advertising," establishes liability for such advertising and allows consumers to seek compensation.

Lawsuit for Compensation for False Advertising

Filing a lawsuit for compensation due to false advertising is an important tool for protecting consumer rights. A consumer who has suffered from misleading advertising can seek compensation for damages. The main elements of such a lawsuit include:

  • Factual circumstances of the violation. The consumer must specify which advertisement misled them and how it influenced their decision.
  • Evidence. This may include a screenshot of the advertisement, written materials, or a receipt for the purchase of the product or service.
  • Assessment of damages. If false advertising resulted in financial losses, it is necessary to gather proof, such as invoices or other documents, to confirm the expenses.

In the lawsuit, the consumer has the right to demand compensation for both material damages and moral harm caused by the violation of their rights.

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Legal Grounds for Compensation for False Advertising

Ukrainian law provides several important mechanisms for protecting consumers from false advertising. The main legal acts that regulate these issues include:

  • Law of Ukraine "On Advertising". Article 27 of this law states that advertisers are responsible for the truthfulness of their ads and can be held liable for false information.
  • Civil Code of Ukraine. It allows filing lawsuits for compensation for material and moral damages caused by false advertising.

In addition, Article 23 of the Civil Code of Ukraine allows for compensation for moral damages if a consumer experiences stress or other psychological distress due to false advertising.

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Court Practice of Compensation for False Advertising

Court practice in the field of compensation for false advertising shows that consumers have a real chance to receive compensation if they can provide sufficient evidence of the violation. For example, in several cases, consumers successfully proved that advertising campaigns manipulated product information, leading to losses. Courts ordered the advertisers to pay compensation.

One example of court practice includes case No750/25, where the consumer proved that the product advertisement contained false information about its characteristics, leading to financial losses. The court ruled in favor of the consumer, ordering the advertiser to compensate for the damages.

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Emotional and Moral Impact of False Advertising

False advertising can have not only financial but also psychological consequences for consumers. Often, manipulative advertising techniques affect a person’s emotional state, pushing them to buy goods or services that do not meet the stated qualities. This can cause stress, disappointment, and feelings of being deceived, which are grounds for seeking compensation for moral damages.

Moral damages include the emotional distress caused by being misled or forced to bear unnecessary expenses due to false advertising.

How to File a Claim for Compensation for False Advertising?

To file a claim for compensation due to false advertising, you must:

  • Gather evidence. This includes the advertising materials, receipt or contract for the purchase of the product or service, and expert opinions on the product's compliance with the ad.
  • Assess damages. Collect invoices, bills, and other documents confirming material losses.
  • Prepare the lawsuit. Clearly describe the violation, provide evidence, and specify the amount of compensation being sought.

The claim for compensation for false advertising should be thoroughly prepared, as the court will review all aspects of the violation, including the certainty of the evidence provided.

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Why Should You Contact a Lawyer?

Cases related to false advertising can be legally complex, especially when dealing with large advertising campaigns or companies. In such cases, the best solution is to consult a professional lawyer who can properly prepare the claim, gather the necessary evidence, and defend your rights in court.

 

Do not delay defending your rights! The sooner you contact our lawyer, the better your chances of success in court regarding false advertising. Delaying may result in the loss of important evidence and complications in the case.

Our experienced lawyers will help you prepare a claim, gather all the necessary evidence, and protect your rights in court. Don’t let dishonest advertisers take advantage of your passivity — contact us now, and we will help you get fair compensation!

How We Will Work

Step 1: Contact Us. To start, you just need to fill out the form on our website or give us a call. We will get in touch with you immediately to clarify the details.

Step 2: Get a Consultation. After the initial contact, we will schedule a convenient time for a consultation. The consultation will continue until all your questions are answered. During this time, you will be able to describe your situation, and we will provide you with an initial case assessment and the prospects for its fastest resolution.

Step 3: Strategy Development. Based on the information provided, we will develop an individual plan that takes into account all the specifics of your case. You will learn about the specific steps we will take to ensure the desired result and a successful outcome in court.

Step 4: Legal Support. After the strategy is approved, we begin working. Our lawyers handle your case from start to finish, ensuring the protection of your interests at every stage—from document preparation to court representation.

Step 5: Achieving Results. Upon completing the case, you will receive a detailed report of the work done and, most importantly, the resolution of your problem. We will support you until you get the desired result and all issues are resolved.

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An Iryna
Head of Commercial and Civil Law Practice

Lawyer, specialist in intellectual property. Specializes in registration and protection of copyrights, inventions, patents, trademarks, as well as development of intellectual property transfer agreements, license agreements.

Contact now

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