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LabTest Products, Inc., advertised that its weight - loss supplement, Drop - It , would cause users to lose weight quickly. The ad claimed that
LabTest Products, Inc., advertised that its weightloss supplement, DropIt would cause users to lose weight quickly. The ad claimed that users could lose as much as fifteen pounds per week without dieting or exercising.In fact, to lose that much weight so fast, an individual would have to run fifty to seventy miles every day.Was LabTest's ad for DropIt deceptive? Yes. Deceptive advertising occurs if a reasonable consumer would beby the advertising claim.vague generalities and obvious exaggerations that a reasonable person would not believe to be literally trueare permissible. When a claim appears to be based onevidence, but the claimcannot be scientifically supported, the claim is deceptive.Here, LaTest's ad cannot be supported by fact. It is false and Greta obtained an auto loan from Ridgeline Bank, but the bank did not give her a payment schedule and refused her attempts to make payments. In fact, Ridgeline told Greta that it had not given her a loan. When the bank discovered its mistake, it demanded full payment. When payment was not forthcoming, Ridgeline declared Greta in default, repossessed her car, and forwarded adverse credit information about her to credit reporting agencies without noting that she disputed the information.Did Ridgeline violate the Fair Credit ReportingAct? Yes. The Fair Credit Reporting Act protects consumers againstcredit reporting. Here,Ridgeline forwarded adverse credit information about Greta to credit reporting agencies without
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