The World Assembly, finding that:
- Fraudulent misrepresentations that cause customers or firms to lose money to liars who misrepresent what they sell, especially across international borders, are a profound harm to consumers or producers who engage in and rely, in good faith, on that trade;
- Section 4 of GA 436 "Protecting Free Expression" fails to allow member nations to prohibit fraud; enabling legislation such as this resolution is therefore required to ensure that reasonable restraints on fraudulent speech are both enacted and enforced;
- Fraud. No person, natural or juridical, may wilfully and dishonestly
- make or
- direct or conspire with another person to make
- make or
- Civil action. Violation of section 1 gives rise to a cause of civil action by the injured party against the alleged violator with damages no less than the fair market value of the things of value acquired in proximate consequence of such misrepresentation, less the value of such things already restored.
- This section applies only to claimed injuries arising from contracts memorialised in writing, unless the relevant jurisdiction elects to expand its application under section 5(a).
- It is a defence against liability under this section to show on the balance of probabilities that the claimant knowingly exchanged the thing of value in question for the misrepresentation itself.
- This section applies only to claimed injuries arising from contracts memorialised in writing, unless the relevant jurisdiction elects to expand its application under section 5(a).
- Anti-alienation. Whensoever a member nation is informed it is more likely than not that a person has violated section 1, it shall prevent that person from alienating or disposing of property which the member nation has probable cause to believe was acquired in violation of section 1.
- Clarification. In this resolution a "thing of value" is any thing – including money, tangible or intangible property, or control over or ownership of a corporation – with the primary purpose of bringing or facilitating economic gain to a user or possessor.
- Reservation. Member nations may:
- individually extend the cause of action in section 2 of this resolution to oral contracts;
- collectively and individually make further regulations to ensure the truthfulness of commercial speech, including but not limited to the claims made in advertisements; and
- collectively and individually make regulations governing the legality and content of advertisements for products which induce a physical or psychological addiction and advertisements targeted towards certain age groups.
- individually extend the cause of action in section 2 of this resolution to oral contracts;