Is comparative advertising legal?

Nowadays, companies all over the world are innovating to the maximum in order to stand out in an increasingly saturated market.

Indeed, the law of supply and demand in the market means that every company has to use impeccable marketing.

Among the classics in marketing techniques, we find advertising communication, which represents a key point in the strategy used by a company to make its product known to its customers.

Throughout this article, we will see what a comparative advertising and to what The degree to which it is legal in France.

Comparative advertising: definition

The Comparative advertising is a term mainly used to describe used in the marketing field.

This type of advertising features two products from two different companies that are compared to each other, either implicitly or explicitly.

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The French State, like many other States in the world, authorises this type of advertising, but on condition that it complies with certain fundamental rules of perfect competition, namely

Do not lie about the competitor's product.

Do not put it down.

To have a purely objective look.

A A company wishing to advertise comparatively must therefore respond to all these conditions on pain of severe penalties that may be applied.

It is important to note that it is only the two competing companies that are affected by this type of restriction, if the comparison comes from a company with no vested interest that would like to compare two other companies or products, then it is well within its rights.

In which cases is comparative advertising entirely lawful?

In addition to the points mentioned above in our analysis, it would be useful to look at them in more detail.

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It should be noted that there have been very few cases since comparative advertising was authorised in France, as it is subject to very strict restrictions which can be very costly if transgressed.

Advertising entirely for goods and services of the same category

As you can see, if a company selling SUVs were to compare its products with sedans offered by its competitor, then it would have to pay compensation.

Therefore, the products being compared must meet and satisfy the same need, or else there will be penalties for this type of advertising.

The comparison must be purely objective

The judgement of the two products in opposition to each other must be purely objective.

The value of the product is not judged, but its various characteristics, such as price, weight, quality of materials and many other analysis elements.

This type of advertising is reserved for certain media only

Comparative advertising must not appear in media such as invoices and means of payment.

It is a rule to be followed closely that serves to ensure pure and perfect competition in a specific market.

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What are the penalties for unlawful comparative advertising?

The applicable sanctions will depend very much on the type of mistake made by the company that initiated the advertising.

The initiator may thus face legal action for unfair competition, misleading advertising or, in the worst case scenario, trademark infringement.

In the case of unfair competition, there will be a penalty of damages to be paid to the competitor who is the victim of the advertising.

For misleading advertising, the defendant faces 2 years in prison and 300,000 euro fine.

Whereas in the case of trademark infringement, the person concerned is liable to four years' imprisonment and 400,000 fine.