Online fraudulent misrepresentation is a civil tort arising out of business law. In a legal contract, all parties mutually agree to the terms and conditions of a contract. However, if there is an instance of online fraudulent misrepresentation, it can make the contract invalid. Suppose the expressed terms are not accurate or false or misrepresented. The contract becomes invalid, and the person at fault is liable for legal actions. It makes the material effect on the contract. Online misrepresentation can occur in various ways, including innuendos, half-truths, gestures, silence when there exists a duty to speak, fake reviews or pictures, exaggerated details, etc. It includes fabrication of documents, falsification, identity theft, etc. They all involve deception of one kind or other and the involvement of the internet. Fraud and theft are similar but different terms. Business fraud can lead to theft; it is primarily about deception using the internet for online fraud, whether intentional. An example of this is an online shopping website or a shopping application on the phone trying to sell something with false details of the product and convincingly making you believe that the product they are selling is of the best quality knowing that the product may not be sold if the details of the product are not falsely exaggerated be considered as fraudulent misrepresentation. Today, scams have grown way beyond phishing emails, credit card, PayPal, and cryptocurrency scams. In addition to the fraud investigator industry, there are information technology laws in the countries to deal with these online scams. Civil laws also play important roles in deciding the liability of the defendant and their punishment.
There are numerous types of online fraudulent misrepresentation depending on circumstances and state laws. Online fraudulent misrepresentation can be done in different forms of communication, such as innuendos, half-truths, gestures or body motions (such as a nod), or silence when there exists a duty to speak. Few fraudulent misrepresentations are listed below.
Presenting a statement or statements of the facts to the other party that is false;
Presenting a partially true statement;
Partial excluding details in a way that creates misunderstanding and harms the other person; and
Withholding or being silent on relevant information intentionally from other parties to cause intentional harm.
The plaintiff has to prove various elements for the other person to be liable for online fraudulent misinterpretation. These may differ by state or jurisdiction; however, elements of proof for online fraudulent misrepresentation using the internet generally include the following points.
A presentation was made online through the internet.
The presentation should be false, deceptive, or misinformed.
When the presentation was made, it should be either known to be false or withholding true facts.
The presentation was made to the other party to rely on it or get deceived by it.
The other party did rely on the presentation or got deceived by it.
The other party should suffer damages as a result of relying on the presentation.
Remedies for Fraudulent Misrepresentation
The plaintiff needs to suffer measurable harm due to online fraudulent misrepresentation to hold the other person liable. The liable party can be an individual or group of individual. Then, based on the harm, the plaintiff will get remedies from the court. In most cases, the remedy is some form of monetary damage. However, the recession is also a remedy in some cases. Although, it can be restored to pre-contractual terms based on the consent of parties, and just the measured loss is claimed by the plaintiff. For instance, if on a shopping webpage the details of the product are exaggerated fraudulently, which was intended by the plaintiff to buy based on those fraudulent details, then the administrator of that webpage, as well as the seller who is selling that product, might be held liable under vicarious liability legal principles.
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