Businesses nationwide rely on convincing customers to use their products or services. Sales puffery plays a central role in it. However, the law draws a crucial line between general sales puffery and fraud. Here is what you need to know.
What is sales puffery?
In simple terms, sales puffery is a mere exaggeration made by businesses about their product or service using colorful language. It is not a factual statement or a promise. Generally, a salesperson uses it to hype their product or service.
When does puffing become fraud?
In most cases, the line between fraud and sales puffery comes down to whether a reasonable person would take the exaggerated statement seriously. For instance, if a salesperson says “This is the best pizza on the market”, a reasonable person can brush it aside as a sales pitch. Moreover, taste is also perceived as subjective.
However, when you make objective claims, consumers take them seriously. If a car manufacturer claims that their car has 200 horsepower capacity, they must honor their commitment, at least in technical sense. Failing to meet verifiable specifications can result in civil claims for breach of contract or false advertising and if done with intentional deceit, it may form the basis for criminal fraud charges against the company.
How an attorney may help
Distinguishing puffing from fraud could be a challenging task without knowledge of legal nuances. An attorney experienced in business law can help you establish the difference between permissible marketing and deceptive practices. Furthermore, based on the directions you get from them, you may be able to craft marketing strategies that are both persuasive and legally sound. This can ultimately help you minimize litigation risks.
