(a)Introduction. The Commission's staff has conducted an investigation of industry trade associations and the advertising media regarding their comparative advertising policies. In the course of this investigation, numerous industry codes, statements of policy, interpretations and standards were examined. Many of the industry codes and standards contain language that could be interpreted as discouraging the use of comparative advertising. This Policy Statement enunciates the Commission's position that industry self-regulation should not restrain the use by advertisers of truthful comparative advertising.
(b)Policy Statement. The Federal Trade Commission has determined that it would be of benefit to advertisers, advertising agencies, broadcasters, and self-regulation entities to restate its current policy concerning comparative advertising. 1 Commission policy in the area of comparative advertising encourages the naming of, or reference to competitiors, but requires clarity, and, if necessary, disclosure to avoid deception of the consumer. Additionally, the use of truthful comparative advertising should not be restrained by broadcasters or self-regulation entities.
1 For purposes of this Policy
Statement, comparative advertising is defined as advertising that compares
alternative brands on objectively measurable attributes or price, and
identifies the alternative brand by name, illustration or other distinctive
information.
(c) The Commission has supported the use of brand comparisions where the bases of comparision are clearly identified. Comparative advertising, when truthful and nondeceptive, is a source of important information to consumers and assists them in making rational purchase decisions. Comparative advertising encourages product improvement and innovation, and can lead to lower prices in the marketplace. For these reasons, the Commission will continue to scrutinize carefully restraints upon its use.
(1)Disparagement. Some
industry codes which prohibit practices such as "disparagement," "disparagement
of competitors," "improper disparagement," "unfairly attaching,"
"discrediting," may operate as a restriction on comparative advertising. The
Commission has previously held that disparaging advertising is permissible so
long as it is truthful and not deceptive. In...
