You v. Competition

Does your marketing compare your product/service with your competitors’? Are your comparisons compliant with Advertising Law?

The National Advertising Division (NAD) recently decided a case where a company made comparison claims that it could not substantiate. The company used disparaging language towards its competitors, and the NAD found that “…the denigrating claim is not truthful, accurate….”

The same marketing campaign included an implied claim that the service was wireless, which was not; again the NAD found the claim to be unsubstantiated. As for pricing, the marketer “…implied comparative claims that … all other …service providers engage in sneaky pricing tactics.” Yet more disparaging language without substance.

Finally, the marketer claimed “no hidden fees.” However, consumers need to pay for additional services to have the product work, and the marketer failed to disclose clearly and conspicuously that such services were needed. Hence, the NAD recommended that the marketer discontinue all the unsubstantiated claims made by the marketer.

Best business practice is to have all marketing campaign materials reviewed for Advertising Law compliance in English and Spanish, preferably BEFORE, launching the campaign publicly. No matter how funny the campaign may be, the marketer is still required to substantiate all claims, expressed and implied.

Can you substantiate all the claims in your marketing campaign? Any question? Feel free to contact me.

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Attorney advertising. Past results do not guarantee a similar outcome