The steady rise in false advertising claims against consumer-facing companies has exposed a major insurance protection gap.
The drivers of these legal actions are many and varied and include consumers’ growing – and regularly-shifting – health preoccupations; sustainability concerns; patriotic consumerism; and even plain old disappointment with fast-food fare.
“Natural,” “green,” “organic,” “pure,” “healthy”, “premium” and “Made in the USA” are among the potential flashpoints, but the list is long, and, apparently, growing.
Plaintiffs have several attack paths, and an abundance of law firms to take up these cases. The growth of social media means it’s easier than ever to drum up support for class actions, while the almost-infinite advertising possibilities afforded by the Internet, and the rise of influencers, have increased exposures.
However, liability insurance policies ar…