What is the potential legal issue for a company if their advertisement guarantees results that are not achievable?

When a company creates an advertisement that guarantees results that are not achievable, the primary legal issue at stake is false advertising claims. False advertising occurs when a business makes misleading statements in promotional materials about the effects or benefits of its products or services. This misrepresentation can lead to consumer deception, which is a violation of various consumer protection laws. Regulatory agencies, such as the Federal Trade Commission (FTC) in the United States, actively enforce truth-in-advertising laws and can impose penalties on companies that make false claims. Thus, guaranteeing unattainable results can mislead customers, resulting in legal repercussions for the business.

Negligence claims are generally related to a failure to exercise reasonable care, which does not directly pertain to the misleading nature of advertisements. Product liability claims arise when products cause harm due to defects, rather than misrepresentation in advertising. Trade secrets violations involve the unauthorized use or disclosure of confidential business information, which is not applicable in the context of misleading advertisements.