Market Your Business: Avoiding False Advertising and Other Traps

How to Legally Market Your Business: Avoiding False Advertising and Other Traps

Marketing is essential to growing your business—but if you're not careful, it can also lead to serious legal trouble. From overpromising results to mishandling customer reviews, small missteps in your promotional efforts can open the door to liability, fines, and reputational damage. Here's what every business owner should know to market with confidence—without crossing legal lines.

1. Be Truthful and Clear

It seems obvious, but it’s worth emphasizing: don’t make promises you can’t back up. Whether you’re advertising a product, service, or result, your claims need to be truthful, not misleading, and supported by evidence. This includes:

• Testimonials and reviews (they must be real and unedited)
• Comparative statements (e.g., “better than the leading brand”)
• Claims about outcomes or results (especially in coaching, health, and financial      services)

In Oregon and Washington, as in most states, deceptive marketing practices are illegal under consumer protection laws. These include both affirmative misstatements and omissions that would likely mislead a reasonable consumer.

2. Mind the Fine Print

If your ad includes conditions—like “only valid with minimum purchase” or “results not guaranteed”—make sure those conditions are clear and conspicuous. Burying important limitations in tiny font or obscure footnotes could get you into hot water.

3. Watch Out on Social Media

Social media has blurred the lines between personal and promotional speech. If you’re posting as your business, or if influencers are promoting your brand, make sure:

• Sponsored content is disclosed (using hashtags like #ad or #sponsored)
• Endorsements reflect honest opinions and actual experiences
• No one is paid or incentivized to leave fake reviews

The FTC has cracked down hard on deceptive social media marketing. If you're using influencers or affiliates, it's worth having a simple written agreement in place outlining expectations and disclosure requirements.

4. Avoid “Free” Unless It’s Really Free

Offering something as “free” when it’s conditional on a purchase or subscription must be clearly disclosed. Terms like “buy one, get one free” are generally okay—if the pricing is transparent and not inflated to offset the cost.

If you’re offering a free trial that converts to a paid subscription, you must:

• Clearly disclose the terms
• Get affirmative consent
• Allow easy cancellation (especially in Washington, where consumer cancellation rights are stronger)

5. Run Giveaways and Contests Carefully

Giveaways and promotional contests are popular marketing tools—but they’re also tightly regulated. Some tips:

• Always disclose the rules, eligibility, and how winners are selected.
• Avoid anything that could be construed as a lottery (i.e., requiring payment to enter and awarding a prize).
• Make sure winners are chosen fairly and that any advertised prize is actually delivered.

In both Oregon and Washington, promotional contests must comply with state consumer protection laws. Transparency and fairness are key.

Final Thoughts

Great marketing doesn’t have to push legal boundaries. In fact, the most sustainable business growth comes from building trust—and staying compliant. When in doubt, it’s worth consulting with a business attorney to review your campaigns or disclaimers.

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The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.