Comparative

Advertising
(Ethics in
Advertising)

By

Pasupulety Guruprasad. B.Tech., MBA.

Advertising is expected to tell the truth, and to tell it

Comparative advertising:

Def: advertising that compares two or more specifically named or recognizably

presented brands of the same generic product or service class” and makes such

comparison in terms of one or more specific product or service attributes.

is designed to highlight the advantages of the goods or services offered by the

advertiser as compared to those of a competitor.

is a natural extension of Freedom of Speech, and a natural consequence of the free

market scenario that we are in today.

• enable advertisers to objectively demonstrate the merits of their products.

• promotes the transparency of the market which improves competition resulting in

keeping down prices and improving products.

Advantages to the Consumer:

• represents an inevitable part of the consumer decision-making process, particularly

at the evaluation stage.

• The concept of “Consumer sovereignty” requires three conditions to be fulfilled –

“Perfect competition”, “Perfect information” and “free choice” – and comparative

advertising creates these conditions.

• there is a danger that once undertakings address the merits and inadequacies of

competing goods or services, they may be tempted to denigrate them or derive unfair

advantages from such inaccurate comparisons.

• commercial relationships may be exposed to the constant threat of unfair practices.

the risk of consumer confusion and deception through Comparative advertising

occurs in the following situations,

• when advertisers of two or more competing brands make substantiated but

irreconcilable product claims.

•When there are incomplete comparisons.

Characteristics of t

rue comparisons:
• Two or more specifically named brands.

• Two or more attributes of the good or service.

• A statement, implication or demonstration of factual information, as a basis for the

claim.

US attitude towards comparative advertising:

• In 1963 the FTC narrowed an order with respect to comparative advertising so as to

allow firms to make “truthful and non-deceptive statements that a product has

certain desirable properties or qualities which a competing product or products do

not possess.”

• The Commission has supported the use of brand comparisons where the bases of

comparison are clearly identified.

Europe attitude towards Comparative advertising:

time and this form of advertising was considered as unfair market practice in the

past.

• After the EC Legislation, Comparative advertising is considered as a legitimate

means of informing consumers of the advantage of the product or service compared

with that of a competitor.

European Parliament and of the Council adopted an amending Directive the

"Directive 97/55" in 1997 which states that, Comparative advertising shall be

permitted when the following conditions are met:

 it is not misleading …;

 it compares goods or services meeting the same needs or intended for the same

purpose;

 it objectively compares one or more material, relevant, verifiable and

representative features of those goods and services, which may include price;

 it does not create confusion in the market place between the advertiser and a

competitor or between the advertiser's trade marks, trade names, other

distinguishing marks, goods or services and those of a competitor;

distinguishing marks, goods, services, activities, or circumstances of a

competitor;

 for products with designation of origin, it relates in each case to products with

the same designation;

 it does not take unfair advantage of the reputation of a trade mark, trade

name or other distinguishing marks of a competitor or of the designation of

origin of competing products;

 it does not prese

 nt goods or services as imitations or replicas of goods or services bearing a

 protected trade mark or trade name.

India attitude towards comparative advertisement:

the “Advertising Standards Council of India (ASCI)” specifies that comparative

advertisement is permissible if:

 The aspects of the products compared are clear

 It is factual and substantiable

 The consumer is unlikely to be mislead

 There is no unfair denigration of the competing product.

Conclusions:

While it is true that comparative advertising is a two-sided tool, with both

potential and dangers if misused, it can develop into a powerful tool for the marketer,

if handled with restraint and good judgement.

worse than ours, that’s Disparagement.

Sticking to hard facts and meaningful issues is always a good idea.

If done with restraint and commonsense, can facilitate efficient decision-

making, and fill the gap in the consumers’ search for meaningful information.

Avoiding any negative references to competitive products, and showing both

products in a fair and equal manner goes a long way towards ensuring that

comparative advertising is fair and accomplishes its dual mission – that of educating

the consumer and selling the product.

Thank you….