Tuesday, March 4, 2008

News Releases Are Subject to Deceptive Advertising Laws

The LA Times reports that a letter sent by a LA Assistant City Attorney to Blue Cross advises them that the U.S. Supreme Court has held that news releases are considered advertising and will be scrutinized for deception. If so, Blue Cross could face damages, similar to running a deceptive ad on TV, if their releases are found to be misleading.

Colbert's letter to Blue Cross says the statements "appear intended to burnish the corporate image of Blue Cross of California, and of its insurance affiliate, in the eyes of consumers."

It advises Blue Cross that the California Supreme Court has held that "such statements are a form of commercial speech subject to the prohibitions against deceptive advertising" under two state laws.

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