Legal Definitions - comparative advertising

Comparative advertising is an advertising strategy where a company promotes its product or service by directly or indirectly comparing it to a competitor's product or service. The aim is to highlight the advertiser's perceived advantages, such as better quality, lower price, or superior features, in relation to what a rival offers. While legal in many jurisdictions, such advertising is subject to regulations to ensure that the comparisons are truthful, fair, and not misleading to consumers.

Here are a few examples to illustrate comparative advertising:

• Imagine a new brand of electric car, "EcoDrive," running an advertisement that states, "EcoDrive offers 50 miles more range on a single charge than Brand X's leading sedan, for a starting price that's $5,000 less." The advertisement then shows a graphic comparing the range and price points of both vehicles side-by-side.
  This is a clear example of comparative advertising because EcoDrive directly names and contrasts its product's key features (range and price) against a specific competitor, Brand X, to demonstrate its perceived superiority.

• Consider a television commercial for a new brand of dish soap, "SparkleClean." The ad shows a dirty plate being washed with "SparkleClean" and becoming spotless, while a voiceover states, "Don't settle for ordinary soaps that leave behind grease. SparkleClean tackles tough messes 30% faster than the leading brand." The "leading brand" is not explicitly named but is implied to be the market leader.
  This illustrates comparative advertising because SparkleClean makes a direct claim of superior performance ("30% faster") against an unnamed but clearly implied competitor ("the leading brand"), encouraging consumers to choose SparkleClean based on this comparison.

• A local internet service provider (ISP), "SpeedLink," publishes an online ad stating, "Tired of buffering and slow downloads? Switch to SpeedLink and experience speeds up to twice as fast as other providers in our area, with no hidden fees." The ad includes a chart showing average speeds of "SpeedLink" versus "typical local providers."
  This is comparative advertising because SpeedLink positions itself as superior by comparing its internet speeds and pricing transparency against other, unnamed "providers in our area," implying that its service offers a better experience than what competitors typically offer.