Nov
23
Companies filing suit over other companies advertising
November 23, 2009 | Leave a Comment
Companies advertise the earth and make outstanding claims in these ads, some of which do end up converting people. So claims that a food item will make you friends in school, or that a shampoo will end up killing all your dandruff quickly, or that a brand of biscuit or milk additive will make your child grow taller and smarter are more often not true, to be taken with a pinch of salt. Even in some case, when there is a probability of the claim being true in some cases, the company will make you understand that it is true in all cases.
Consumers have challenged such claims in the past, but now the poor state of the economy has caused companies to join this fight, and challenge the claims of other companies in this regard. Such actions are of course even more beneficial to customers, since such actions help them from getting hoodwinked by the false claims of companies (link to article):
Companies that were once content to fight in grocery-store aisles and on television commercials are now choosing a different route – filing lawsuits and other formal grievances challenging their competitors’ claims. Longtime foes like Pantene and Dove, Science Diet and Iams, AT&T and Verizon Wireless, and Campbell Soup and Progresso have all wrestled over advertisements recently.
Dueling advertisers, however, argue that these claims can mislead consumers and cause a pronounced drop in sales. Because advertisers are required by law to have a reasonable factual basis for their commercials, their competitors are essentially demanding that they show their hand. The goal is usually not money but market share. Companies file complaints to get competitors’ ads withdrawn or amended. The increase in these actions may be a reflection of the dismal economy: during recessions, when overall spending lags, marketers must fight harder for customers.
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