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Chasing the Competition: Can Comparative Advertising Get You in Trouble?
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should Know, Jeffrey Babener, Legaline Publications
MLM consultant practice tips. MLM Companies are required to file registrations in a number of states which have adopted MLM Statutes.   Specific MLM information must be filed and specific rights for distributors, including MLM buy back and MLM refund policies must be addressed in MLM documentation. MLM Legal and MLMLegal.com and Babener and Associates provides expert MLM Consultant and MLM Consulting advise on MLM corporate, MLM software, MLM Compensation, MLM Taxes, etc. MLM Consulting is an important component for MLM startup.  Careful Choice of MLM Software is another component of MLM Corporate.  An MLM Consultant and MLM Law and MLM Legal is part of the MLM Startup Team.  MLM Compensation must be reviewed by an MLM Consulting standpoint by an MLM Consultant and MLM Legal and MLM Law professional and programmed by a MLM Software and MLM Technology provider.

The Truth ... and Nothing but the Truth ...

A seller, however, must make sure that the content of the comparative ads is entirely truthful.   Sellers may be held liable for unfair competition under federal and state laws if they misrepresent either their own or their competitors' products.  

One major case involved U-Haul.   Jartran launched an advertising campaign which falsely represented its prices and the quality of its rental trucks and trailers either alone or in comparison with U-Haul, the plaintiff.   Jartran also disparaged U-Haul products.   The court issued an injunction, pointing out that the defendant made false statements of fact about its own products, and that the advertisements actually deceived or had the tendency to deceive consumers.   Therefore, claims of comparative superiority should be true and should be backed up by facts and even testing where appropriate.

The bottom line is that every seller has a right to truthfully use a competitor's mark in comparative advertising, as long as that right isn't abused.   Even if the seller uses a competitor's mark in comparative advertising in a way that does not cause a likelihood of confusion, there may be liability for false advertising or trade libel if the claims of comparison with the other goods are not 100 percent true and correct.

DIRECT SALES consultant practice tips. DIRECT SALES Raiding issues are a continuous challenge for DIRECT SALES Companies.   Many problems may be avoided by appropriate DIRECT SALES Legal language in DIRECT SALES distributor agreements and DIRECT SALES Policies. Guidelines for activity during the DIRECT SALES distributorship and after the DIRECT SALES distributorship are imperative.   DIRECT SALES Legal and MLMLegal.com and Babener and Associates provides expert DIRECT SALES Consultant and DIRECT SALES Consulting advise on DIRECT SALES corporate, DIRECT SALES software, DIRECT SALES Compensation, DIRECT SALES Taxes, etc. DIRECT SALES Consulting is an important component for DIRECT SALES startup.  Careful Choice of DIRECT SALES Software is another component of DIRECT SALES Corporate.  An DIRECT SALES Consultant and DIRECT SALES Law and DIRECT SALES Legal is part of the DIRECT SALES Startup Team.  DIRECT SALES Compensation must be reviewed by an DIRECT SALES Consulting standpoint by an DIRECT SALES Consultant and DIRECT SALES Legal and DIRECT SALES Law professional and programmed by a DIRECT SALES Software and DIRECT SALES Technology provider.