There is nothing inherently suspicious about comparative advertising and there is certainly no presumption that the advertising is in breach of the ACL. As a human among marketers, his goal is to write words people actually want to read. The Trade Marks Act, 1999, has incorporated provisions relating to comparative advertising under Sections 29(8) and 30(1). a false or misleading statement of fact about a product or service; such statement either deceived or had the capacity to deceive a substantial segment of potential consumers; the deception is material because it is likely to influence the consumer’s purchasing decision; the product is in interstate commerce; and. Comparative advertising, sometimes called “comparison advertising,” is an advertising strategy in which a brand compares itself to a competitor to highlight parity or superiority. Nobody wants to watch you and your rival duke it out over who has the better value proposition. Brands get sued all the time by consumers and even other brands. Comparative advertising encourages product improvement and innovation, and can lead to lower prices in the marketplace. Assistant Managing Editor of Ad Age, EJ Schultz, points out that brands like McDonald’s have gone after Burger King, who has a smaller market share. What Is Comparative Advertising? For instance, you and the shop next to you both sell … For instance, you and the shop next to you both sell similar quality, shaped and priced coffee mugs. To access this resource, sign up for a free trial of Practical Law. Sign in to your account. Searching “FreshBooks vs QuickBooks” in Google may reveal this search ad from FreshBooks. There’s no animosity, no boring statistics or selling points, and the exchange between “cool” Justin Long and his nerdy PC counterpart is funny and entertaining. A common phrase you may hear in the legal and business vernacular is ‘good faith’. However, if done carefully, your comparative advertisement can be effective. As little as people like a bully, they equally dislike people who take themselves too seriously. You’re well within your rights to trash talk the competition as long as you can walk the walk. If you tell. ‍ So, what should you keep in mind when creating comparative landing pages for your startup? The claim was that MillerCoors used corn syrup in its brewing process and Budweiser did not. The Competition Bureau has stated t… Otherwise, you look like a bully picking on a helpless target. Consumers may be fiercely loyal to Mac over PC, but are they passionate about body wash? Not only that, but you risk giving that target free publicity. Click through and you’ll see an infographic that compares FreshBooks with a bigger rival, QuickBooks, in six key categories: If you’re searching for an alternative to the well-known CRM, Salesforce, you might search “Salesforce alternative” in Google. Examples of Comparative Advertising. So before you start planning a video to jab your competition, you want to know: Is comparative advertising legal? Section 29(8) of The Trademarks Act, 1999 enunciates situations, when the use of a trademark in advertising can constitute infringement. But many brands have been sued due to comparative advertising. The FTC’s policy states, “Comparative advertising, when truthful and non-deceptive, is a source of important information to consumers and assists them in making rational purchase decisions. To know more please refer to our. Although comparative advertising is allowed in the UK, there are some specific regulations that must be complied with to ensure that any campaign is legal. Comparative advertising is where goods and services are promoted by comparing them to a competing product or service. If you’re going to claim you’re superior to your customer, make sure your claim is based on something they find important about the product. For consumers, comparative advertising is more than a branded battle taking place in public. Comparative Advertising Law and Legal Definition. According to the Australian Competition and Consumer Commission, comparative advertising is a direct challenge to competitors. For advertisers, the stakes are higher. The Pros of Comparative Advertising . It can be a powerful tool for any size business. If you’re a bigger brand, at least make sure your rival has a significant market share. This could be in a side-by-side comparative fashion, with media that calls out a specific competitor by name, or even stunts like blind taste tests between Pepsi and Coke: The FTC, which regulates issues related to comparative advertising, calls the tactic “beneficial” to advertisers, agencies, broadcasters, and consumers: Comparative advertising, when truthful and non-deceptive, is a source of important information to consumers and assists them in making rational purchase decisions. ... and why they switched to you. Marketing and advertising are as highly visible to consumers as they’ve ever been, and that means if you get called out on Twitter by your rival or their fans, you have to be ready to prove your words. However, you must understand how to use it. Here are some mistakes you should avoid. From a comparative advertising campaign, people want information and they want to be entertained. In court, the advertiser is unde… Comparative advertising is risky for a lot of brands. The right comparative advertising campaign can level the playing field for smaller brands and declare superiority for others. Some of the most severe occur when brands break the law. Comparative Advertising in the UAE: A legal perspective. Schedule a product demo to learn more. Don’t go so far as to pile on attacks. Comparative advertising is a type of advertising technique. Sign up to our Legal Advice Plan and access professional legal advice whenever you need it. Of course, fun and light isn’t always necessary. In some cases, you don’t even need to search “vs” or “alternative” to find a comparative ad online. Comparative advertising qualifies as a trademark infringement or dilution. Comparative advertising is a weapon for products and services marketing. What you say about you, what you say about them, and where you say it, all affect whether your rival can sue you. To consumers, brand perception is reality. Keeping it legal. So you will have to be cautious while promoting your product by comparing it with your competitors’. Contact us. Demo includes AdMap™, Personalization, AMP. You cannot make untrue statements about the competition, or blatantly misleading claims. Chloe is a Legal Technology Intern at Lawpath. But the point stands: Comparative advertising is certainly legal. Internet service providers? This is doubly true of brands. Could it have been more disparaging? Still, that doesn’t mean you should use it. Brands get sued all the time by consumers and even other brands. However, Australian courts have stated that there is no general rule on this, other than to ensure that you make an accurate comparison that is not misleading or deceptive. Otherwise, you may find yourself liable for misleading and deceptive conduct. The long answer, however, involves some specific guidelines about just how you compare yourself to the competition. Comparative advertising can assist consumers in making more informed decisions and improve their product/services as it enhances consumer welfare. Click through it and you’ll find a post-click page that lists Marketo’s flaws along with some “red flags.” With the headline “The #1 Alternative to Marketo,” it’s clear this page is trying to steal market space from their bigger rival. If you’re going to jab your competition, make sure you don’t take yourself too seriously. While the topic of recent Federal Trade Commission (FTC) regulation of rating, review, and placement websites are not the subject of this article, 10 general comparative advertising considerations for digital marketers are covered below. Comparative advertising, when truthful and non-deceptive, is a source of important information to consumers and assists them in making rational purchase decisions. The ideal legal framework for comparative advertising puts consumers in the position to be the judges of the comparison, if the falsity of the claim is exposed by the rival, the consumer stands to benefit by the knowledge derived out of such exposure. According to the Trademark Law Revision Act of 1988, anyone is vulnerable to a civil action that “misrepresents the nature, characteristics, qualities, or geographical origin of his or her or another person’s goods, services, or commercial activities.” However, comparative advertising is legal as long as it is truthful and it is not false or deceptive. The issue of comparative advertising became common after trademark legislation made it easier to sue competitors for advertising attacks. That’s a boring annoyance. (2) The laws against misleading advertising in … No matter the type of campaign, you must be able to scale it to all your customer segments. First, comparative advertising is like picking a fight. With the end of financial year fast approaching, it is paramount to ensure your books and accounts are in order. Thus, we recommend these three tips: You must accurately state the price differences between your product or services and your competitors. According to Samuels, for a business to seek legal recourse under the Lanham Act, they have to show: If you’re questioning whether you or your rival has a case under the Lanham Act, that’s best hashed-out with your legal department. As such, advertisers should ensure that they obtain legal advice in advance of commencing a comparative advertising campaign. Here are a few tips to keep in mind when you’re creating yours: You need to be able to back up the claims in your comparative ad campaign. Ted Vrountas is a content writer at Instapage who hates most marketing content. Find out how with an Instapage demo. Comparative advertising is the use of another company's trademark in order to compare that company's products with its own. 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