FTC Issued Policy Statement on Comparative Advertising (August 13, 1979)

Statement of Policy Regarding Comparative Advertising

August 13, 1979

The Federal Trade Commission (“FTC”) issued a Statement of Policy regarding comparative advertising, emphasizing that truthful comparative advertising should not be discouraged by industry self-regulation. The FTC's investigation into industry practices revealed that many existing codes and policies seemed to hinder the use of comparative advertising. The Commission asserts that advertisers should be free to reference competitors, as long as they provide clear information to avoid consumer deception.

The policy supports brand comparisons, provided the basis for these comparisons is clearly identified. It highlights the importance of comparative advertising in delivering valuable information to consumers, aiding their purchasing decisions, promoting innovation, and potentially lowering prices in the marketplace. The FTC intends to scrutinize any restrictions on such advertising closely.

The document addresses the concept of disparagement, stating that while some industry codes discourage disparaging competitors, such advertising is permissible if truthful and non-deceptive. The FTC argues that truthful comparisons are beneficial, even if they may disparage competing products. Moreover, the policy critiques any self-regulatory standards that require a higher level of substantiation for comparative advertising than for unilateral claims, advocating for consistency in evaluating all advertising practices. The ultimate measure remains whether the advertising can mislead consumers, which should be assessed on a case-by-case basis.

For more information, see here:  https://www.ftc.gov/public-statements/1979/08/statement-policy-regarding-comparative-advertising

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