The next step

To the legislation

[Weblink]

Compare safely

What is it?

Comparative advertising is where you promote your product directly against a competitor’s. As such it can help your customers (new and existing) decide which product or service is best for them. The supermarkets are always at it, comparing prices, deals and quality. But is it something for you? The first thing to understand is that are plenty of ways this kind of marketing can backfire. In pitting yourself directly against a rival you are not only giving them exposure but you are opening yourself up to a responsive campaign from them.

Right to respond. An example is Morrisons, which took on the discounters Aldi and Lidl, with a “price match guarantee”. Lidl responded with a very clever ad detailing what Morrisons’ customers needed to do to receive the same price they would get at Lidl - it was a very long list, at the end of which was the line: “Or you could just go to Lidl” .

Legal quagmire

It will come as no surprise that there are some strict rules for this kind of marketing, so it’s not something you can conjure up in an afternoon. The regulations can be found on the Advertising Standards Authority’s (ASA) website under the Consumer Protection from Unfair Trading Regulations 2008 and the Business Protection from Misleading Marketing Regulations 2008 (we’ve found the short section you need, see The next step ).

What’s the claim? Be sure the comparison you are making is clear and won’t be easily misunderstood. You also don’t want to exaggerate the benefits of your business or undermine those of a competitor. Tip 1. It’s often best to stick to easily measurable comparisons, such as price. But make sure you always have evidence to back your claims up, and to prove the comparison you are making is accurate. You can’t compare apples and pears. Tip 2. You need to be fully prepared for this - it’s no good just saying you are better, you’ll need to prove that you are.

Who is the competitor? The ASA says that “comparisons with identifiable competitors should be between products meeting the same need or intended for the same purpose” . Again, any information can’t be misleading and people should be able to get hold of the information that relates to the comparison.

Pointing the finger. There is less red tape if the competitor is unidentifiable, but it doesn’t mean if you don’t name them you can get away with much more. If it’s obvious who the other company is, e.g. you are in a small sector or locality, then you need to tread carefully, especially if your ads could be seen as denigratory. Tip. Avoid general criticisms and phrases that are derogatory to competitors, even if you don’t mention them. For example: “We fix your computers with no gimmicks - just a simple, honest and professional service” is very likely to get you into hot water as it suggests others are charlatans.

Penalties? If someone complains and the ASA finds that you’ve fallen foul of the rules, you will be forced to pull the ad. If you don’t you can be referred to Trading Standards and there could be a fine or prosecution.

For a guide to the legislation visit http://tipsandadvice-business.co.uk/download (CD 19.14.06).