Question

Topic: Advertising/PR

Is A Competitor's Ad Legal?

Posted by elmchargue on 9/27/2016 at 10:12 AM ET 125 Points
Hi, everyone. This is my first post here, and I look forward to engaging in great discussions going forward.

I have a question regarding the legality of a "somewhat" competitor's CPC ad campaign online.

My client owns a living community. Let's call it, "Shady Forest." It is a housing community with it's own schools, restaurants, etc. In addition, because of the wonderful nature around the location, the homeowners often rent out these homes during the off season...for high prices. Shady Forest literally only refers to this community that is owned by the developer. There are no other homes in this area available for rent that aren't part of the development.

A website that offers rentals for vacation homes all over the internet is currently running an ad that advertises, "Shady Forest homes for rent, $88/night". However, the homes are not in Shady Forest. Once you click through to the website, the homes are in adjacent areas.

My concern is that the association of Shady Forest with $88/night rent advertisements cheapens the luxury brand of the community.

Any guidance is appreciated!
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RESPONSES

  • Posted by mgoodman on 9/27/2016 at 12:18 PM Moderator
    I certainly understand the concern, but the question should really be directed to an attorney, not to a bunch of marketing folks.

    Several years ago I served as an expert witness in a case similar to this. In the end we won, but the legal fees (and expert witness fees) were astronomical ... and I hate to think of the pain my client would have suffered if the decision had gone the other way.
  • Posted by Gary Bloomer on 9/27/2016 at 8:37 PM Member
    Depends on the country the ad is running in. In the UK, ads are judged by the Advertising Standards Council, under which ads must be legal, decent, honest, and truthful. Legally, the ad may be doing nothing wrong. If you are concerned about your competitor's impact on your business, your task now is to outrank them with superior messaging.
  • Posted by cookmarketing@gmail. on 9/29/2016 at 8:50 AM Accepted
    If "Shady Forest: is Registered Trademark, a simple cease-and-desist would be the first step.
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