Comparative advertising encourages product improvement and innovation, and can lead to lower prices in the marketplace. The EU Misleading and Comparative Advertising Directive 2006 (the “Directive”) defines a comparative advertisement as an ad that explicitly or by implication identifies a competitor or goods or services offered by a competitor.It seems like an intuitive concept, but … Comparative advertising is permitted, but may not be misleading. What rules apply to advertising? In this article, we set out some tips and traps for businesses considering using comparisons (particularly as to price) in their advertisements. Advertising is an activity that is strictly defined by national and international law and antitrust regulations.. When a comparative advertisement makes a comparison that is misleading … In the United States, such uses are non-infringing “nominative fair uses” if they do not cause confusion and … Comparative advertising, when truthful and non-deceptive, is a source of important information to consumers and assists them in making rational purchase decisions. Unlawful comparative advertising What’s unique about comparative advertising is the way value gets communicated.Whereas a non-comparative ad may say something along the lines of, “This perfume will make you smell good,” a comparative ad may opt for something like, “That perfume will make you smell good, but this perfume will … Comparative advertising is a hard-bitten and attention-grabbing way of saying that we are better than our competitors. False advertising is the use of false, misleading, or unproven information to advertise products to consumers.The advertising frequently does not disclose its source. The Dutch Advertising Code Authority (Stichting Reclame Code) has drawn up the Dutch Advertising Code (NRC, pdf). Within this context, there is a need for a close monitoring of the advertising … ... a false or misleading … Comparative advertising can be misleading if the comparison is inaccurate or does not appropriately compare products. The NRC lays down rules to be met by advertising. Misleading and comparative advertising generates lack of functionalities on the market, distorts competition and harms the consumer‟s decision-making process. Bait advertising takes place when an advertisement promotes certain (usually ‘sale’) prices on products that are not available or available only in very limited quantities. Many governments use regulations to control false advertising. Comparative advertising, when truthful and non-deceptive, is a source of important information to consumers and assists them in making rational purchase decisions. In the context of cases of unfair competition, the European Court of Justice has defined the difference between misleading and unlawful comparative advertising. Never set out to make a false or misleading claim. It a marketing strategy frequently used by competing companies to increase their sales and have a greater market share by advertising and comparing their products with similar competing products. Special advertising codes apply to certain products, such as … One form of false advertising is to claim that a product has a health benefit or contains vitamins or minerals that it in fact does not. What is a comparative advertisement? Truth in comparative advertising is not enough; you must also be clear. A misleading comparative advertisement may also attract the attention of a regulator like the Australian Competition and Consumer Commission. Bait advertising. Comparative advertising encourages product improvement and innovation, and can lead to lower prices in the marketplace. 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