Final answer:
When a customer is injured due to fraudulent misrepresentation, the seller must have been negligent. The FTC checks claims for accuracy, and sellers should mitigate risk by providing factual information and following the principle of caveat emptor.
Step-by-step explanation:
When a user or customer is injured because of fraudulent misrepresentation, the seller must have been negligent in its statements. Fraudulent misrepresentation requires a misstatement of material fact made with knowledge of its falsity or a reckless disregard for the truth. Sellers who wish to reassure buyers can offer transparent information, warranties, and demonstrate compliance with regulations such as those enforced by the Federal Trade Commission (FTC), which checks factual claims about a product's performance. Sellers should avoid language that the FTC might consider misleading or exaggerated, and always adhere to the principle of caveat emptor, that is, "let the buyer beware."