Advertising, by word of mouth or in print, can be a great way to generate interest and sales for your business, although a great deal of care needs to be exercised. False or misleading claims, or negative comparisons of a competitor’s product may expose your business to litigation, which may result in a claim on your general liability insurance California.
You may indeed have a product which you believe to be superior to a competitor’s product and it may also be much cheaper. However, the way you convey that message is vitally important. Any claims made in comparison advertising must be substantiated, whether they are about your own or a competitor’s product. Sweeping generalizations should be avoided and products compared like for like.
Equal care must be taken when naming or displaying a competitor’s product, as any misrepresentation (or perception thereof) could lead to litigation. Unfortunately, not naming your competitors may be as risky: by default, you could be said to have included other similar products in the comparison even though you have not physically stated names.
Advertising can be a great tool when used correctly but a great deal of thought needs to go into a campaign comparing your product to that of a competitor. Rushing out to market could be costly, not least in terms of the potential toll on your general liability insurance California.