Making It Stop: A Practical Guide To Challenging Your Competitor's Advertising Claims
You are an in-house attorney or outside counsel and your client brings a competitor’s advertising claim to your attention, convinced that it cannot be substantiated. You are asked to take action to prevent further damage to your client’s market position. But taking a stand does not and should not always mean taking your competitor to court. What are your options, and what factors will influence your recommended course of action?
A demand letter, otherwise known as a “cease and desist” letter, states the challenger’s legal argument against the validity of the claim and sends a simple message to the competitor – modify or discontinue the claim, or suffer the consequences. When a demand letter or network notification is not a viable option, however, there are three principal ways to challenge a competitor’s advertising claims: (1) initiate a proceeding before the National Advertising Division (NAD), (2) alert state and/or federal regulators, or (3) litigate. These options are not exclusive, and in some cases it may be effective to pursue more than one simultaneously. Similarly, failure to obtain the desired result through one avenue may require your client to proceed with another.
This article provides the practical guidance necessary to evaluate which option or options are best suited to serve your client’s needs and increase the likelihood of a successful challenge. By weighing the pros and cons of each method and staying up-to-date on relevant cases and trends, you will quickly transform any plan of attack from standard to strategic.
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This article appeared in the October issue of The Metropolitan Corporate Counsel, Vol. XVI, No. 10
Used with permission. © 2008 The Metropolitan Corporate Counsel Inc., All rights reserved.