Consumers should be aware of the potential for Internet scams and fraud.
New York State has enacted laws to protect the public from false or misleading information used in advertising. The rules apply to any advertisement presented by any medium, including the Internet. However, the buyer should be aware that it is very difficult to monitor Internet advertising. Many online ads and sales pitches are full of extraneous and misleading information. Consumers are advised to carefully evaluate data before committing to a major purchase based on Internet advertising.
New York Penal Code 190
The State of New York Penal Code 190 states, "A person is guilty of false advertising when, with intent to promote the sale or to increase the consumption of property or services, he makes or causes to be made a false or misleading statement in any advertisement or publishes any advertisement in violation of chapter three of the Act of Congress entitled 'Truth in Lending Act' and the regulations thereunder." In New York State, false or deceptive advertising is a class A misdemeanor.
Consumer Legal Recourse
Consumers who have alleged that they have suffered damage from a New York licensed business's use of false or misleading advertising on the Internet offered with the intent to defraud are granted by law the right to file a civil lawsuit for recovery of damages. If you bring suit against the Internet vendor on your own, you are entitled to recover actual damages or $50, whichever is greater. A consumer may also recover the cost of attorney fees and damages up to $1,000 if it can be proven that the advertising was willfully or knowingly fradulent.
New York Attorney General
If you have been defrauded based on Internet advertising placed by a New York business, contact the New York State Attorney General to file a complaint. The State of New York Attorney General is empowered to initiate a lawsuit for false advertising on behalf of the state and may recover a civil penalty not to exceed $5,000 per violation.
U.S. Federal Trade Commission
Because Internet advertising is viewed online, the ads are not restricted to viewing by only residents of New York. Internet advertising comes under the jurisdiction of the United States Federal Trade Commission. The FTC regulates deceptive or unfair practices or acts of business engaged in commerce. All complaints for out-of-state transactions should be made with the FTC. Although New York consumers are not entitled to sue on their own behalf under the statute, the State of New York Courts have held that any violation of the federal statute is a violation of New York State General Businesss Law 346.
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