When the Lanham Act was passed in 1946, it created a broad new federal cause of action for unfair competition, allowing businesses to sue based on false statements competitors made about their own products, not just over disparaging statements made about the plaintiff’s goods. Because state unfair-competition statutes and common law principles vary widely, the Lanham Act has become the centerpiece of modern private false-advertising litigation.
The act broadly prohibits false or misleading statements in commercial advertising or promotion concerning the “nature, characteristics, qualities, or geographic origin” of “goods, services or commercial activities,” and confers standing to sue on “any person who believes that he or she is or is likely to be damaged by” such statements to bring suit.
