Comparative advertising campaigns can become misleading or deceptive conduct if they fall under the Australian Consumer Law (ACL). Comparative advertising is where businesses compare their products more favourably than their competitors’ products. It is important to distinguish this from a mere puff. If a statement is capable of quantification, measurement or concrete evaluation, then it is more likely to be a representation and not a puff. If your business is being unfairly compared in a way that it is misleading or deceptive, our business lawyers can assist.

Comparative Advertising

Comparative advertising can assist consumers in making more informed decisions and improve their product/services as it enhances consumer welfare. There is nothing inherently suspicious about comparative advertising and there is certainly no presumption that the advertising is in breach of the ACL. However, if actual comparisons between your business’ products are used, care must be taken to avoid error and half-truths

Factors to Determine Unfair Comparisons

There are a number of key principles that are used to determine whether certain advertising is in breach of the Act. For your business, you need to consider these factors carefully to determine whether a claim may be valid. These factors include:

  • An advertisement must be examined in its entirety, not just the meaning of isolated words in the advertisement;
  • The impact of an advertisement on a viewer or reader is created on first impression and not after a lengthy analysis of the parts of the advertisements;
  • Most viewers or readers do not make a close study of the constituent parts of an advertisement. Accordingly, a misleading representation formed on first impression will not be mitigated by a smaller and non-obvious part of the advertisement;
  • Suppliers who engage in comparative advertising must take particular care to ensure the comparison made is correct;
  • Inaccuracy, half-truth, ambiguity or omission made in the context of comparative advertising may have greater potential to mislead consumers than in other forms of advertising.

Conclusion

At LegalVision, our business lawyers can assist you with protecting your business’ interests. If you feel that another business is harming the image of your business, get in touch. Although intention is not a requirement for establishing a contravention of the Australian Consumer Law, where a person engaging in advertising or promotion intends to convey a particular impression designed to influence consumers in a particular way, this may more readily infer that the attempt succeeded and that consumers were so influenced. To understand your business’ rights and resolve a business dispute, call us today on 1300 544 755.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Lachlan McKnight
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at info@legalvision.com.au

View Privacy Policy