What is the law of comparative advertising?

Comparative advertising is a form of advertising that compares a product or service to its competitors. In New Jersey, Unfair Competition Law imposes certain restrictions on comparative advertising. The law states that any comparative advertisement must not be false, deceptive, or designed to mislead or confuse the public. The advertisement must accurately and truthfully describe the differences between the product or service being advertised and those of its competitors. Comparative advertising must not make unsubstantiated claims or misleading statements. It must be based on legitimate factual differences and not on deceptive half-truths. The truthfulness of the comparative advertisement must be substantiated by the advertiser and must be available for public inspection. If the advertiser cannot present evidence that the comparative claims in the advertisement are accurate, then those statements may be deemed to be false and lead to penalties from the New Jersey state regulator. Comparative advertising must also consider the possible effects of such an advertisement on others in the marketplace. If the comparative advertisement inappropriately affects another business or industry, the New Jersey Unfair Competition Law could impose a financial penalty on the advertiser. Additionally, an advertiser must not use tactics such as disparaging another person’s business or product, promoting false claims or using another company’s logo or trademark without permission. In summary, New Jersey Unfair Competition Law imposes certain rules and regulations on comparative advertising. Advertisers must ensure that their comparative ad is accurate, truthful and not misleading and also not affect other businesses negatively. They must also be able to substantiate their claims and refrain from using another company’s logo or trademark without permission. Failure to comply with these rules could lead to financial penalties from the state regulator.

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