If you own a business in Nevada, it is imperative to understand the laws that govern how you market your product or services. The state has enacted a comprehensive set of deceptive trade practices laws that address a range of issues as well as define penalties that will be assessed in the event of a violation.
The Nevada Attorney General points out that a deceptive trade is any act that aims to mislead the consumer. Those activities may include the following:
- Failing to give consumers information about the good or service
- Making false statements about what the good or service can do
- Presenting an item as new even though it is used
- Advertising a product without the intent to sell the product as advertised
Violation of these laws can result in a cease and desist order from the court. The party that committed the wrongdoing will be responsible for the costs of the investigation, court expenses and associated bills. Further, if the person or company received any money as a result of the deceptive trade practice, the entity must make restitution payments and may face fines of up to $10,000 for each violation. Further, committing one of these actions against an elderly or disabled person could result in a fine of $12,500 for each infraction.
There are also criminal penalties that may come into play. For example, a willful violation of the lay in Nevada is considered a misdemeanor. The second such violation is viewed as a gross misdemeanor, and the third will be treated as a felony, punishable by a year or more in jail.
Civil and criminal penalties aside, breaking these laws can do irrevocable damage to a business’ reputation. Staying on the right side of the law should be the goal of your company.
While this information may be useful, it should not be taken as legal advice.