Suits Over Ads Demand Proof
Last updated: November 23, 2009 - 8:20am
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 ads recently. The goal is usually not money but market share. Companies file complaints to get competitors' ads withdrawn or amended. The cases themselves might seem a little absurd. Dueling advertisers, however, argue that these claims can mislead consumers and cause a pronounced drop in sales. Since 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 increase in these actions may be a reflection of the dismal economy: in recessions, when overall spending lags, advertisers must fight harder for customers.
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