Insurance Coverage for False Advertising Claims

This article provides an overview of case law holding that insurance companies are obligated to provide coverage for false advertising claims, particularly under the advertising injury section of a CGL policy. In doing so, the article discusses the general framework for advertising injury coverage under CGL policies and the inapplicability of certain exclusions sometimes asserted by insurers to deny coverage.

38 minute read February 27, 2012 at 02:21 PM
By
Richard Milone And Mahmood Ahmad
Insurance Coverage for False Advertising Claims

Section 43(a) of the Lanham Act, a federal trademark statute, establishes a cause of action for false advertising and provides that any person who “uses in commerce any ' false or misleading description of fact, or false or misleading representation of fact, which in commercial advertising or promotion, misrepresents the nature, characteristics, qualities, or geographic origin of his or her or another person's goods, services, or commercial activities” shall be liable to any person who believes that he or she is or is likely to be damaged by such act.

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