Fraud & Failure to Disclose

“Failure to disclose” is a legal term used to refer to when a person or company conceals or omits important information. Gibbs Law Group’ false advertising lawyers have represented millions of consumers nationwide in cases prosecuting major companies for engaging in deceptive and unfair acts, including the failure of these companies to disclose material facts about their products or services.

Failure to Disclose is a form of Misrepresentation & Fraud

In most fraud cases, there is active misrepresentation by the company being sued. In other cases, the misrepresentation occurs through the company’s silence on a key issue, such as an auto defect or hidden fee. This silence, also known as failure to disclose, is a form of fraud.

Manufacturers and sellers of a product typically have more information about that item than the average consumer. Because of this advantage, these companies have a duty to disclose material facts to consumers prior to the purchase of a product, or in some cases, after a product has been purchased if it relates to the item’s safety or warranty options.

What is a “material fact?”

A material fact is defined as a fact which, if known, would have affected the judgment of one or more of the parties to a transaction. In an action for fraud, a material fact must be of sufficient importance to the matter that a reasonable person would have been likely to rely on it.

Questions about Failure to Disclose?

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