Can a company publicly refute a competitor's advertising claim?
June 14, 2023 | 40,00 EUR | answered by Georg Sauer
Dear lawyer,
My name is Christiane Müller and I am the owner of a small cosmetics studio in the city center. Lately, there have been increasing problems with a competitor who is spreading false and misleading advertising about my company. These statements are damaging my reputation and costing me customers. I have heard that as a business, I have the right to publicly refute the advertising claims of my competitor.
I am wondering if it is legally permissible to refute the false advertising claims of my competitor and how I should best approach this. I am concerned that my competitor could sue me if I publicly take a stand. Are there any possible legal consequences that I should consider?
I would appreciate your assessment of the situation and any possible solutions on how I can effectively refute the false advertising claims of my competitor without getting into legal trouble.
Thank you in advance for your support.
Sincerely,
Christiane Müller
Dear Mrs. Müller,
Thank you for your inquiry regarding the false advertising claims of your competitor that are damaging to your cosmetic studio. Indeed, companies have the right to take action against misleading or false advertising claims made by other companies. Competition law provides various legal avenues to defend against unfair competition.
Firstly, you should examine whether the advertising claims of your competitor are indeed false or misleading. If this is the case, you can take legal action against them. One option is to send a cease and desist letter to your competitor, demanding that they stop the false advertising claims and provide a declaration to cease. If the competitor does not respond to the cease and desist letter, you can obtain an injunction or file a lawsuit in court.
If you wish to publicly refute the false advertising claims of your competitor, you are generally allowed to do so as long as your statements are true and not misleading themselves. You should ensure that your statements are factual and objective to avoid legal issues. It is advisable to seek legal advice before making any public statements.
There is always a risk that your competitor may sue you for defamation or damage to reputation if they feel attacked by your public refutation. Therefore, it is important that you document and substantiate your statements well to legally protect yourself. Legal advice can help you weigh the risks and find the best course of action.
Overall, it is important that you defend against unfair competition and protect the reputation of your cosmetic studio. With the assistance of an experienced competition law attorney, you can take effective measures to refute the false advertising claims of your competitor and avoid legal consequences.
I hope my assessment is helpful to you and I am available for further questions.
Sincerely,
Georg Sauer
Competition Law Attorney
