What is the law of comparative advertising?
Comparative advertising is the practice of comparing goods or services of one company to the goods or services of another company. In Arizona, comparative advertising is regulated by unfair competition law. Under this law, comparative advertising must be truthful and not misleading in its comparison of two or more similar products or services. Advertising that is likely to deceive, confuse, or mislead consumers is prohibited. Comparative advertising must also be relevant to the goods or services being advertised and the comparison must be done in an honest and fair manner. Companies are not allowed to compare their services to the services of their competitors in an exagerated or misleading way. Comparative advertising must comply with the Arizona Consumer Fraud Act, which makes it illegal for a business to make deceptive or false claims about a product or service. Both state and federal laws also require comparative ads to have clear and conspicuous disclosures about the comparison being made. This includes disclosing any differences in pricing or features between the two products or services. Finally, comparative advertising cannot be used to disparage a competitor’s goods or services. For example, a company cannot make false or deceptive claims about its competitor’s goods or services in order to defame them. If a comparison is considered to be false, deceptive, or misleading, the competitor can take legal action against the party making the comparison.
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