False Advertising Leads to Lawsuits

The law requires that when launching a marketing campaign publicly, regardless of venue, it must be legally compliant. When a company purposely misleads consumers, it can potentially lead to lawsuits. In the lawsuit against Grubhub filed in May 2020, the complaint alleges that “ Grubhub, one of the largest restaurant delivery services in the United States, is knowingly employing a nationwide false advertising campaign to steer patrons to its partner restaurants by falsely declaring that its competitors are closed or not accepting online orders when they are in fact open for business.”

Furthermore, “[w]hile it is Plaintiff’s information and belief that Grubhub’s false advertising tactics predate the COVID-19 pandemic, the impact of its nationwide practice is especially damaging to restaurants that are struggling to keep afloat economically during the pandemic.”

How does a company build trust if it misleads to the consumer? This lawsuit is pending, so, stay tuned.

Best business practice is to have marketing campaigns that are legally compliant with both, Advertising and Privacy Laws before launching campaigns publicly. Being legally compliant with Advertising, Marketing and Promotions Law could minimize legal risks and hefty fines from false and misleading advertising lawsuits or challenges.

Friendly reminder: Substantiation + transparency = TRUST! Having legally compliant marketing campaigns builds trust. Any question? Feel free to contact me. https://calendly.com/audrey-advertisinglaw/30min

#substantiationequalstrust #transparencyformstrust #advertisingandmarketinglawyer

For more information:

https://www.classaction.org/media/co-craft-llc-v-grubhub-inc.pdf