Legal Definitions - single-source requirement

The single-source requirement is a specific legal principle applied in certain false advertising lawsuits. It dictates that for a company (the plaintiff) to successfully sue another company (the defendant) for making false claims about its products, the plaintiff must demonstrate two key elements:

• First, the plaintiff must prove that they are the only legitimate or genuine supplier of the specific type of product being misrepresented by the defendant.
• Second, the plaintiff must show that consumers, if they had known the truth about the defendant's falsely advertised product, would have purchased the plaintiff's genuine product instead.

This requirement is a narrow exception to the general rules governing false advertising, which typically address situations like "passing off" (where one company tries to make its product appear to be another's) or directly disparaging a competitor's goods. The single-source requirement applies when a defendant makes false claims about the inherent nature, quality, or origin of their *own* product, and the plaintiff is uniquely positioned as the sole provider of the *true* version of that product.

Examples:

• Example 1: Unique Historical Artifacts

  Imagine a company called "Ancient Relics Inc." which is the sole legitimate seller of certified artifacts recovered from a famous, historically significant shipwreck. These artifacts are authenticated by leading marine archaeologists and come with extensive provenance documentation. A competitor, "Treasure Trove Co.," begins advertising "authentic shipwreck relics" from the same historical event, implying their items are equally genuine, even though their products are actually modern reproductions or items from unrelated, less significant wrecks. Ancient Relics Inc. could potentially invoke the single-source requirement. They would need to prove they are the only genuine supplier of artifacts from that specific shipwreck, and that consumers, misled by Treasure Trove Co.'s false advertising, would have bought Ancient Relics Inc.'s authenticated items if they had known the truth about Treasure Trove Co.'s reproductions.

  This illustrates the term because Ancient Relics Inc. is the single, genuine source of the specific historical items being misrepresented. The false advertising by Treasure Trove Co. directly impacts the market for Ancient Relics Inc.'s unique products by creating confusion about authenticity.

• Example 2: Patented and Certified Technology

  Consider "Bio-Clean Solutions," a company that holds the exclusive patent and certification for a revolutionary "self-sterilizing medical-grade surface coating" that actively eliminates bacteria and viruses upon contact, a claim backed by extensive scientific trials. A rival, "Surface Guard Innovations," starts marketing its own coating as "advanced self-sterilizing," implying similar cutting-edge technology and efficacy, even though its product only has basic antimicrobial properties and lacks the patented, active self-sterilizing mechanism. Bio-Clean Solutions could argue the single-source requirement applies. They are the only company producing the genuine "self-sterilizing medical-grade surface coating" with their patented technology. Surface Guard Innovations' false advertising misleads buyers into believing their product offers the same unique, certified benefits, thereby diverting sales from Bio-Clean Solutions, who is the sole provider of the true, patented technology.

  This demonstrates the term because Bio-Clean Solutions is the single source of the specific, patented, and genuinely effective "self-sterilizing" technology. Surface Guard Innovations' false claims about its product's capabilities directly compete with the unique offering of Bio-Clean Solutions, targeting consumers seeking that specific, advanced functionality.

• Example 3: Uniquely Sourced and Processed Food Product

  "Highland Harvest Co." is the exclusive producer of "Certified Rare Mountain Berry Jam," made from a specific species of berry that grows only in a protected, high-altitude ecological zone, and processed using a unique, traditional method that preserves its distinct flavor and nutritional profile, certified by a national food authority. "Valley Foods Inc." begins selling "Mountain Berry Preserve," claiming it's also from high-altitude regions and implying a similar rarity, unique processing, and health benefits, even though their berries are a common variety grown in lower altitudes and processed conventionally. Highland Harvest Co. could potentially invoke the single-source requirement. They would need to demonstrate they are the sole legitimate supplier of "Certified Rare Mountain Berry Jam" from that specific, protected region with its unique processing. Consumers, specifically seeking that rare, certified, and uniquely flavored product, might be misled by Valley Foods Inc.'s advertising and purchase their product, believing it to be the same genuine article.

  This example illustrates the term because Highland Harvest Co. is the single source of the genuinely rare, certified, and geographically specific food product. Valley Foods Inc.'s false advertising creates confusion and diverts customers who are specifically looking for the unique product only Highland Harvest Co. provides.