2022
, 2015/2016 ESSAY ASSIGNMENTS
ABC Company launches an enormous advertising campaign in the daily
newspapers and on television to promote its new hybrid, eco-friendly
vehicle. In the advertisements, the car of ABC Company is compared to
that of its competitor XYZ Company, which is a well-known and successful
car manufacturer. In the advertisement, it is stated that the car of ABC
Company is better that the car of XYZ Company as far as price, petrol
consumption, road handling ability and performance is concerned.
Discuss in detail the lawfulness of this advertisement by referring to:
a) the viewpoint of the Advertising Standards Authority,
b) the common law and
c) Statutory law.
Indicate (in your discussion) whether it would make any difference to the
answer if the allegation in the advertisement is false, in contrast to when
it is true. Substantiate your answer by referring to applicable legislation,
judgments and the opinions of legal writers.
[20]
Comparative advertising is a method of advertising whereby one trader places his
or her goods or services next those of another in order to compare them with regard
to various attributes such as price, quality, characteristics, functionality etc. By
making the comparison, the comparing trader hopes to stimulate the sales of his or
her own product by using the competitor’s energy.
Comparative advertisement is common in foreign countries like USA unlike in South
Africa, where there is little competition as a result of numerous factors, amongst
them being the prohibition by the Advertising Standards Authority’s (ASA) code of
good of Conduct.
a) The viewpoint of ASA with regard to the lawfulness of the advertisement
Prior to 1993, comparative advertisement was totally prohibited until its code was
amended to permit comparative advertisement in certain circumstances. See a
discussion of permissible circumstances under clause 7 in page 193 to 194 of the
study guide.
Each and every aspect of the advertisement containing the comparison should be
taken in to account, whether it is visual, audible, or in whatever form of
representation that may be used. The guiding principles should be that the products
and/ or services should be promoted on their own merits, and not on the demerits of
competitive products. Therefore the intention, including the motive, of the
advertiser would play a vital role.
Although the code applies only to ASA members, it does not mean that non
members may be freely use comparative advertising. Common law and or Statutory
law will still apply to curb the problem.
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