Wednesday, February 04, 2009
Business Ads Could Lead to Lawsuits
Legislation introduced to battle intentionally false and misleading advertisements from out-of-state companies could have unintended consequences for Maryland businesses.
The legislation (SB 10/HB 175) would make it an unfair and deceptive trade practice for an out of state business to publish a telephone directory advertisement in Maryland containing a local telephone number, unless the company clearly states in the ad the nonlocal location of the business.
Maryland Chamber Vice President of Government Affairs Ron Wineholt testified earlier this week in opposition to the legislation. “Statements that are false, misleading or have the capacity, tendency, or effect of deceiving or misleading consumers are already violations of the Consumer Protection Act.” Wineholt said.
The language in the bill is overly broad in its definition of a nonlocal business and could unintentionally impact Maryland companies. If passed in its current form, Maryland businesses could face penalties under the Consumer Protection Act.
During the hearing, the bill sponsor, Sen. Katherine Klausmeier, indicated a willingness to work with Wineholt and representatives from the Maryland Bankers Association to narrow the language so that it only impacts businesses who intentionally place false ads to mislead consumers. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
