This document discusses comparative advertising in India. It provides an overview of regulations for comparative advertising in India, including the Monopolies and Restrictive Trade Practices Act and guidelines from the Advertising Standards Council of India. It examines some key court cases related to comparative advertising and disputes between brands. Experts are quoted discussing whether comparative ads help brands and the potential advantages and risks of comparative advertising.

1. PRESENTED BY-:
Saurabh Nigam
2nd
Semester
Management scholar
14pmm504
Department of Pharmaceutical Management 1

2. FLOW OF PRESENTATION
2

3.  Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an
identified sponsor.
 Advertisers include not only business firms but also
museums, charitable organizations, and government
agencies that advertise to various target publics.
 Ads are a cost-effective way to disseminate messages,
whether
• to build brand preference for Coca-Cola or
• to educate a nation's people to avoid hard drugs.
 Advertising is expected to tell the truth, and to tell it well.3

4. 4

5. POSSIBLE ADVERTISING OBJECTIVES
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6. 6

7. PRODUCT ADVERTISING
Nonpersonal selling of a particular
good or service.
- TV ads
- billboards
- junk mail
7

8. PIONEER ADVERTISING
“… tries to develop primary demand…”
Done in the early stage of the Product Life Cycle.
Also called as informative advertising
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9. INSTITUTIONAL ADVERTISING
Promoting a concept, idea, or philosophy, or the
goodwill of an industry, company, or organization.
This is closely related to the PR program of the
company.
Also called Advocacy advertising.
9

10. COMPETITIVE ADVERTISING
Tries to get you to take
action now - buy the
product now. Immediate
Buying
Direct Indirect
Tries to point out the
advantages so if you think
about this product later,
you will buy our brand
10

11. Either directly or indirectly comparative, positive or
negative, and seeks “to associate or differentiate the two
competing brands”
The Federal Trade Commission (FTC), United States,
defined comparative advertising as “advertisement that
compares alternative brands on objectively measurable
attributes or price, and identifies the alternative brand by
name, illustration or other distinctive information.”
COMPARATIVE ADVERTISING
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12. 12

13. ADVERTISEMENT COMPARING
HORLICKS WITH COMPLAN
To degrade the competitor’s brand on the basis of
value proposition the competitive brand is offering
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14. 14

15. Comparative advertisement of
Jet Airways, Kingfisher Airlines and Go
Air
15

16. WHY COMPARATIVE
ADVERTISEMENT..??
Due to liberalisation and globalisation of economy, and
dismantling of “License-permit” system, entry into
production and services is no more barrier and so the thrust
of competition has shifted to aggressive and vigorous
promotion of products and services.
In a competitive environment, every representation of a
product or service, is based on its comparison with those of
the competitors and so is not about “what we are” but “
what others are not”.
These practices raise questions about truthfulness and
fairness of representation of products and services. 16

17. Indian courts have traditionally allowed advertisers ample
leeway when making puff statements about their products.
Even untrue claims about a product are often allowed, with
the line being drawn only at disparagement or slander of
another producer or its goods.
As a result, puff statements regularly feature in comparative
advertising and, over time, the courts have developed a set of
principles to assess the legitimacy of such claims.
EMERGENCE OF REGULATIONS
FOR COMPARATIVE
ADVERTISING IN INDIA
17

18. Monopolies and Restrictive Trade Practices Act, 1969,
(MRTP) was enacted to prevent monopolies and restrictive
trade practices in the economy.
In 1984, the MRTP Act was amended to add a chapter on
Unfair Trade Practices and provided a basis upon which a
claim could be made against disparagement of goods.
Section 36 A of the Act lists several actions to be an
‘unfair trade practice’.
The provision which pertains to comparative
representation is contained in Section 36 A(1)(x)
EMERGENCE OF
REGULATIONS
18

19. According to Section 36-A(1)(x) 'unfair trade practice' means a
trade practice which, for the purpose of promoting the sale, use
or supply of any goods or for the provisions of any services,
adopts any unfair method or unfair or deceptive practice
including any of the following practices, namely :-
the practice of making any statement, whether orally or in
writing or by visible representation which, gives false or
misleading facts disparaging the goods, services or trade of
another person.
The MRTP Act created a body called the “DGIR” and a
judicial body called the “MRTPC”
Then it was repealed by the Competition Act 2002.
EMERGENCE OF
REGULATIONS
19

20. In addition to the Monopolies and Restrictive Trade Practices
Act, the Trademarks Act 1999 (Section 28(9) –notified
with effect from September 15 2003, mandates that the use
of a registered trademark by an advertiser results in
infringement if it:
 takes unfair advantage of the mark’s reputation;
 is contrary to honest practice in industrial or commercial
matters;
 is detrimental to the mark’s distinctive character; or
 damages the reputation of the trademark.
EMERGENCE OF
REGULATIONS
20

21. The “Advertising Standards Council of India(ASCI)”
specifies that comparative advertisement is permissible if:-
The aspects of the products compared are clear
The comparisons do not confer artificial advantages on the
advertiser
It is factual and substantiable
The consumer is unlikely to be mislead
There is no unfair denigration of the competing product.
INDIA’S ATTITUDE
TOWARDS COMPARATIVE
ADVERTISEMENT
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22. In effect, self-praise is allowed; slander is not.
Defamation of competitors and their products is not
permissible under Indian laws
It is also held that direct reference to another product’s
inferiority cannot be carried in an advertisement.
INDIA’S
ATTITUDE…..
22

23. At the same time, the courts have ruled that if a
competitor makes the consumer aware of his mistaken
perception about a product, the plaintiff cannot complain
against such action.
Comparative advertising is allowed only if it is done
within certain permissible limits, along pre-defined
parameters.
Advertisers must in that case be cautious and careful
before targeting their competitor’s products.
INDIA’S ATTITUDE….
23

24. INADEQUACY
OF RULES
AND
REGULATION
S
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25. Dispute related to the television commercial of Volini pain
reliever manufactured by Ranbaxy Laboratories.
The Gujarat High Court held that the advertisement
disparaged Paras Pharmaceuticals Ltd’s product, as the
inferior product depicted in the advertisement, bore uncanny
resemblance to the packaging of moov.
MOOV VS VOLINI CASE
PARAS PHARMACEUTICALS LTD. VS
RANBAXY LABORATURIES LTD.
25

26. The Commission elaborated the meaning of the provision:
In order to bring home a charge under clause (x) of section
36A(1) it must be established that the disparagement is of the
goods, services or trade of another.
The words "goods of another person" have a definite
connotation. It implies disparagement of the product of an
identifiable manufacturer.
REGAUL VS UJALA
Regaul Blue India Ltd. v/s Jyothi Laboratories
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27.  The MRTPC was of the view that
“Colgate has been in the business of manufacturing and
selling toothpaste in India for more than 50 years and the
word toothpaste has become synonymous with Colgate
over the years.”
 The Commission in addition noted that the jingle in the
background was a familiar one of Colgate. The
comparative product in the television commercials could,
thus, be identified as Colgate dental cream.
 Thus, it became a case of comparative advertisement and
a claim was made of disparagement of Colgate’s
products.
New Pepsodent v/s Colgate Case
Hindustan Unilever Limited v/s Colgate Palmolive
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28. As Finance Minister and one of the early architects of
liberalization, Chidambaram rightly highlights:
“A world class legal system is absolutely essential to
support an economy that aims to be world class. India needs
to take a hard look at its commercial laws and the system of
dispensing justice in commercial matters in order to ensure
fair trade.”
FM on regulations for comparative
advertisement
28

29.  No….
 To summarize the interpretation of the Commission, an
advertisement could disparage other products and yet, it
would not be a case of ‘disparagement’ so long as the
disparaged product is not identifiable.
 The conflicting claims would need to be assessed in the
context of the constitutional provisions on the
Fundamental Rights, privileging the freedom to speak.
Is the law adequate to prevent unfair trade
practices?
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30. The opening up of the economy, on its own, is not going to
create and sustain competition. An appropriate law, adequate
enforcement, strong infrastructure, and a quick dispute
settlement mechanism would be needed to sustain
competition.
In the absence of it, we would only be regressing from a
‘license permit raj’ to the ‘jungle rule of the marketplace.’
Is the law adequate.....?
30

31. Do comparative ads help the brand?
It is most often seen in markets and categories that are
price-sensitive or where a benefit/attitudinal upper hand by
brand is the key to winning consumer votes in a crowded
me too category. Consumers today need instant, ready-to-
consume information on products and services.
Comparative advertising helps them make informed
choices.
This, of course, assumes that comparative advertising does
not misrepresent the facts.
Rohit Ohri,
Managing Partner
JWT India.
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32. Do comparative ads help the brand?
Some brands want to build their images around controversy
and ambush in which case, it may still be strategically
correct. Still, there is no research that shows consumers like
a name-caller anymore than they like a brand that seeks to
connect with them in a positive way.
Lynn D’souza
Chairman and CEO,
Lintas Media Group
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33. Advantages of Comparative advertising
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34.  There is a danger that once undertakings address the merits and
inadequacies of competing goods or services, they may be
tempted to denigrate them or derive unfair advantages from
such inaccurate comparisons.
 Commercial relationships may be exposed to the constant threat
of unfair practices.
 The risk of consumer confusion and deception through
Comparative advertising occurs in the following situations,
•When advertisers of two or more competing brand
make substantiated but irreconcilable product claims.
•When there are incomplete comparisons.
RISK OF COMPARATIVE
ADVERTISING
34

35. While it is true that comparative advertising is a two-sided
tool, with both potential and dangers (if misused).
It can develop into a powerful tool for the marketer as well
as for consumers if handled with restraint and good
judgement.
Avoiding any negative references to competitive products
and showing both products in a fair and equal manner will
ensure that dual mission of comparative advertising
is accomplished – that of educating the consumer and
selling the product.
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36. 36