Economic downturns tend to produce an increase in comparative advertising
campaigns. Meager sales revenues make it tempting to aggressively target the
competitor's business. Consumers enjoy watching advertisers take potshots at
each other. But a competitor whose weaknesses are targeted — not so much. A
competitor can choose to respond in kind or legally challenge the ad. If the ad
message is truthful and does not mislead or deceive consumers, then the
challenge is generally not difficult to rebuff. A recent court opinion suggests that
advertisers whose ads are challenged by competitors should look to commercial
liability policies for advertising injury coverage. It may be possible to cover legal
fees for defending ads challenged by competitors. Cynthia Blake Sanders of Ober|Kaler advises business to keep a careful eye on their marketing messages.
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