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Comparative Advertising

Within comparative advertising also known as competitive advertising, there is indirect and direct comparative advertising. Indirect comparative advertising "makes a comparison between one brand or product and other brands or products without specifically naming them." while direct comparative advertising "specify a competing brand or product by name and allege that brand or product being promoted is in some way superior.

With direct comparative advertising arises problems. By the FTC policy, these advertisements are required to be truthful, honest and accurate. Relevant factors like size or weight are required to be specified. Issues often arise if a company makes false claims or infringes upon a trademark. But if a company is truthful and makes factual comparisons direct comparative advertising is useful and effective. Because of the problems that can come from direct comparative advertising many companies opt to use indirect comparative advertising in order to avoid these problems.

FTC Policy:

"Commission policy in the area of comparative advertising encourages the naming of, or reference to competitors, 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."

Comparative Advertising