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Comparative Advertising in the European Union
Published online by Cambridge University Press: 17 January 2008
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More than 20 years after the measure was first proposed, the European Union has finally succeeded in adopting a directive designed to harmonise disparate national laws relating to the use of comparative advertising in the single market.1 In this article the authors examine the background, rationale and substance of the new legislation, before considering its impact on the current UK law. With a view to the possibility that implementation may contribute to the transatlantic harmonisation of advertising law, the new regime is measured against the liberal benchmark of US case law and recent Federal Trade Commission policy.
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References
1. Directive 97/55/EC (1997) O.J. L290/18 (23 Oct.).Google Scholar
2. In fact it has been claimed that comparative advertising amounts to almost 50% of all advertising in the US; see Schmitz, B., “Advertising and Commercial Communications—Towards a Coherent and Effective EC Policy” (1993) 16 J.C.P. 387, 403.Google Scholar See also Robert, Levy, “Big Resurgence in Comparative Ads” (1987) 129 Dun's Business Month 56–58Google Scholar; Rogers, John C. and Williams, Terrell G., “Comparative Advertising Effectiveness: Practitioners' Perceptions Versus Academic Research Findings” (1989) 29 J. Advertising Research 22–37.Google Scholar
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17. Sec the 15th recital of Directive 97/55/EC.
18. Inserting as Art.7(5) of Directive 84/450.
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54. S.21(2) CPA 1987 establishes a similar provision to cater for an advert that is misleading as to the method of determining the price of goods etc.
55. The Code of Guidance for Traders on Price Comparison, published by the Department of Trade and Industry under s.25 of the Act.
56. Similar rules are contained in the ITC and Radio Authority Codes of Advertising Standards and Practice.
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63. The US FTC supports comparative advertising for similar reasons.
64. However, again it would be prudent to sound a note of caution. Recently, in Case C-333/94P Commission v. United Kingdom [1997] All E.R. (EC) 481Google Scholar, the ECJ was offered the opportunity to rule on whether the so-called “state of the art defence” contained in s.4(1)(e) of the Consumer Protection Act 1987 is in conformity with Directive 85/374/EEC on the apportionment of liability for defective products. For some ten years the defence has been criticised as an unduly generous interpretation of the formula adopted by the Directive. The UK provision was condemned as a transparent attempt to attenuate the scheme envisaged by the European Council. The ECJ, however, took a different view, endorsing the UK provision in a surprisingly expansive ruling that will serve to limit the scope of product liability at the point of exploitation of technology thresholds. Significantly perhaps, in the light of the above comments regarding the modus operandi of the ECJ, the judgment handed down was terse and formalistic, confined to a barren extrapolation of basic principle and largely devoid of supportive reasoning. See Spink, P., “The Consumer Protection Act 1987—The State of the Art Defence” (1997) 42(10) J. Law Soc. of Scotland 416–418.Google Scholar
65. Sir Leon Brittan, Vice President of the European Commission, set out the Commission's proposals for a new bilateral trade agreement at Harvard University on 19 Mar. 1998.
66. Many itinerant stand-up comedians can testify to this.
67. International problems aside, regional differences alone dictate that three or four different versions of the same national advert may be running in the UK at any one time.
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