In the context of consumer law, what does 'substantial misrepresentation' mean?

Substantial misrepresentation refers to making a false statement that impacts a consumer's decision-making process when purchasing a product or service. This concept is essential in consumer law as it protects consumers from being misled by inaccurate information. A false statement can significantly influence how a consumer perceives a product's quality, value, or usefulness, leading them to make a purchase based on that misinformation.

In this context, the other choices do not align with the legal definition of substantial misrepresentation. Providing a clear and accurate product description aligns with truthfulness in advertising rather than misrepresentation. Marketing a product with exaggerated claims may lead to a form of misleading advertising, but it does not necessarily meet the threshold of substantial misrepresentation unless it directly misleads consumers on a critical detail affecting their decision. Offering discounts on products has no correlation with making false statements about the product's characteristics or benefits, therefore it does not fit the concept of substantial misrepresentation either.