The following is for educational purposes, and not meant to be legal advice.
To prevent comparative advertising violations in the United States:
(a) Verify all express and implied (suggested) claims that an ad conveys to readers to ensure that they are accurate, adequately supported, not misleading, and not false.
(b) Do not make any misrepresentations relating to the qualities, functions, features of Company’s products or services, or those of other companies.
(c) Present disclosures clearly and prominently so that they are actually noticed and understood by readers. To ensure that readers are not confused, use direct language, avoid small type (i.e. use all caps or bolded type), place qualifying information close to the claim being qualified, and avoid making inconsistent statements that contradict the disclosures.
(d) Avoid repeating unconfirmed statements or gossip. Any subjective claims (opinions) must be honestly held, not misrepresent the qualifications of the holder or basis of the opinions, and be phrased in a way such that readers understand the source and limitations of the opinions.
(e) Do not use someone’s name or likeness without permission, either directly or by use of “look-a-like” or “sound-a-like”.
(f) Do not misuse, disparage, alter, or otherwise dilute another company’s trademarks.
(g) Do not use another company’s trademarks in a manner that causes reader confusion as to the source or origin of a product or service.
(h) Be truthful and not deceptive when making statements about a competitor. Comparisons do not need to compare all the features and functions of Company’s products or services with those of a competitor, but should not distort a competitor’s reputation, products, or services.
Example: When attempting to convey the financial health of a competitor, state factual information (such as information gathered from a competitor’s SEC filings or similar public sources) that allow readers to draw their own conclusions, versus directly stating that the competitor has discontinued operations, is financially unstable, or is facing bankruptcy.
(i) Avoid untruthful statements that may be interpreted as impairing the reputation of another company or individual as being incompetent, of poor moral character, unreliable, or dishonest.
Example:
Do not state: Competitor M’s management has a record of dishonesty.
May state: A class action suit was filed against Competitor M, alleging that Competitor M issued financial reports that inflated its earnings. As part of the settlement of the lawsuit, certain Competitive M officers were requested to contribute to the settlement.
(j) Do not incorporate any copyrighted works of a competitor, such as a competitor’s original drawings, screen shots, designs, or photographs.
Comment Preview