# Commercial Law (GCL)

## Title 11. Trade Regulation

### Subtitle 7. False Advertising

#### Section 11-701

(a) In this subtitle the following words have the meanings indicated.

(b)

  (1) "Advertise falsely" means to use any advertisement, including a label, which is misleading in a material respect.

  (2) "Advertise falsely" includes the use of an advertisement that contains an affirmative representation that the Maryland sales and use tax will not be collected by the retailer on a particular transaction without notifying the purchaser of the purchaser's duty to pay the sales and use tax directly to the Comptroller of this State.

(c) "Person" includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

(d) "Telephone company" has the meaning stated in Sec. 1-101 of the Public Utilities Article.

#### Section 11-702

This subtitle does not apply to any:

(1) Television or radio broadcasting station which broadcasts an advertisement;

(2) Publisher or printer of a newspaper, magazine, or other form of printed advertisement who publishes or prints an advertisement; or

(3) Publisher, printer, or distributor, including a telephone company or directory provider, of an advertisement or telephone listing in a telephone directory.

#### Section 11-703

A person may not advertise falsely in the conduct of any business, trade, or commerce or in the provision of any service.

#### Section 11-704

To determine if an advertisement is misleading, the following, in addition to any other appropriate considerations, shall be considered:

(1) Any representation made by statement, word, design, device, or sound, whether alone or together; and

(2) The extent to which the advertisement fails to reveal a fact which, in light of any representation made, is material with respect to the advertised commodity or service under conditions which are:

  (i) Customary or usual; or

  (ii) Described in the advertisement.

#### Section 11-704.1

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Local telephone classified advertising directory" means a telephone directory that:

      (1) Contains classified advertisements; and

      (2) Is distributed free of charge to residents in the State.

    (ii) "Local telephone classified advertising directory" includes a directory distributed by a person other than a telephone company.

  (3)

    (i) "Local telephone directory" means a telephone directory that is:

      (1) Available free of charge to telephone subscribers in an area of the State; and

      (2) Does not contain classified advertisements.

    (ii) "Local telephone directory" includes a directory distributed by a person other than a telephone company.

  (4) "Location" means any part of the address of a person, including the street, the city, or the state.

(b)

  (1) This section applies only to business telephone listings and advertisements.

  (2) This section does not apply to any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States or any other state bank having a branch in this State.

(c)

  (1) A person is in violation of Sec. 11-703 of this subtitle if the person:

    (i) Causes to be published in a local telephone classified advertising directory an advertisement that misrepresents the location of the person; or

    (ii) Causes to be listed in a local telephone directory a telephone listing that misrepresents the location of the person.

  (2) For purposes of this subsection, a person commits a separate violation for each edition of a local telephone directory or local telephone advertising directory in which the advertisement or telephone listing is published.

#### Section 11-705

(a) Any person who violates any provision of this subtitle is subject to a penalty not exceeding $500 for each violation, which penalty the Attorney General may recover for the State in a civil action.

(b) Before the Attorney General commences any action under this section, he shall give to the person against whom the action is proposed:

  (1) Notice by registered or certified mail of the proposed action; and

  (2) An opportunity to show cause orally or in writing why the action should not be commenced.

#### Section 11-706

In any action brought under this subtitle, it is a defense that the advertisement concerning which the action is brought is subject to and complies with the rules and regulations of and the statutes administered by the Federal Trade Commission or any unit of the State government.

#### Section 11-707

This subtitle does not modify any right of a person in private litigation.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)