False Advertising Results in Class Action Litigation

Class actions have been used by consumers to directly seek readdress for deceptive advertising practices by U.S. merchants and manufacturers. A renowned case was the M130 case against Palm in 2002. A class action including purchasers of the M130 sued Palm and stated that Palm misled these customers into believing that its M130 personal digital assistance could support more than 65,000 colors. This claim for false advertising stated that there was false and deceptive advertising that caused these consumers to purchase the M130 Palm.

The following questions have been addressed in this article:

What did the complaint allege?
How can a settlement value be determined?
How can a product avoid action for false advertising?

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