All states have consumer protection laws prohibiting businesses from engaging in deceptive practices, including false advertising. The vast majority of states allow consumers to act as a “private attorney general” by bringing a class action lawsuit to obtain relief for themselves and other consumers who were deceived in the same way.
The reason most states allow consumers to bring class actions in response to deceptive trade practices is because the potential recovery is often too small to justify an individual suit. Consider if you purchased a bottle of water that was advertised as genuine spring water, when in fact it was ordinary groundwater. Let’s say you paid $2 for the water, when had you known it was ordinary groundwater, you would have only been willing to pay $1 for it. Your damages would be the difference in value between what you were promised (spring water) and what you received (groundwater), which is $1. For most people, it is not worth paying a lawyer to bring a lawsuit over $1, and most lawyers would not be incentivized to take the case on contingency (foregoing payment upfront in exchange for a percentage of the recovery should you win).
But imagine if you could bring a suit on behalf of 10 million people who bought the same falsely advertised bottle of water. And imagine if the law allowed you to recover more than just damages, but an additional amount to compensate you for your time and effort in bringing a case on behalf of your fellow consumers—something called an “incentive award,” which many courts allow for. Then it would make perfect sense for you to sue, and for a lawyer to take your case. The class action’s ability to align incentive structures in this way makes it a powerful tool to serve the public interest.
Under federal law, class representatives must “fairly and adequately protect the interests of the class.” If your interests would be aligned with those of other members of the class whom you seek to represent, and if you would vigorously prosecute the interests of the class through qualified counsel, then you would likely meet the criteria to serve as a class representative. However, if your claim would differ from those of the class in a way that would give rise to a defense that is unique to you, or if you would be unable or unwilling to see the lawsuit through to its end, even if it took several years, then you probably are not the best fit to represent the class. For example, in the bottled water hypothetical discussed above, if you did not particularly care that the water you purchased was spring water or if you were unaware that it was marketed as spring water when you made the purchase, then a court probably would not allow you to represent those who did care and were aware. Beyond the incentive award, many class representatives are proud to be the named plaintiff in a lawsuit brought in service of others.
The statute of limitations—the time limit after which the law prohibits you from filing a claim—varies depending on the state-specific statute you sue under. Some limitation periods are quite generous, like the four-year period under California’s Unfair Competition Law. Other states have statutes with shorter periods, like the two-year period under Texas’s Deceptive Trade Practices Act.
Don’t wait. Class actions can be complicated, and it takes time to gather the evidence, analyze the facts, conduct legal research, and prepare a compelling argument to file in court. Whether or not you ultimately choose to file a claim, if you feel you have been wronged and would like to preserve your ability to take legal action, it is better to act sooner than later. An attorney can help you understand what options are available to you under the law, including potentially avoiding litigation altogether through settlement.
