Can a competitor file a false advertising claim against another competitor?
Yes, a competitor can file a false advertising claim against another competitor in California. Unfair Competition Law in California is based mainly on state statute and established common law principles. Unfair Competition Law Provision 17200 prohibits any person from engaging in unfair competition. In addition, Section 17500 prohibits any person from making or disseminating any statement, concerning real or personal property or services, which is untrue or misleading. This section covers false advertising claims. False advertising claims can arise in a variety of circumstances. These claims may arise when one business misrepresents the quality of its goods or services or misrepresents the goods or services of another business. In the context of unfair competition, a competitor can allege a claim of false advertising if they can show that a rival company has engaged in deceptive or misleading advertising practices. The Federal Trade Commission (FTC) Act specifically prohibits all unfair or deceptive acts or practices in commerce, including false and misleading advertising. In California, competitor standing is allowed when it is established that the false advertising affects the marketplace in which competitors in the same line of business compete. Therefore, a competitor can bring a false advertising claim in California against a rival company if the competitor has been adversely affected by the false or misleading advertising.
Related FAQs
How does trademark law protect against trademark infringement?What is the doctrine of primary jurisdiction?
How do antitrust laws apply in the context of unfair competition?
What is the scope of the tort of appropriation of corporate opportunity?
What is the purpose of the Communications Decency Act?
How does the Digital Millennium Copyright Act (DMCA) protect against unfair competition online?
What does the Lanham Act prohibit?
What is the difference between a dilution claim and a trademark infringement claim?
What remedies are available for a violation of unfair competition law?
Are there any special rules for the protection of famous marks?
Related Blog Posts
What Is Unfair Competition Law and How Can It Protect Your Business? - July 31, 2023Understanding Unfair Competition Law: What You Need to Know - August 7, 2023
Unfair Competition Law: Key Concepts and Terminology - August 14, 2023
The Basics of Unfair Competition Law for Business Owners - August 21, 2023
How to Recognize and Respond to Unfair Competition Practices - August 28, 2023