By Mark Huffman
ConsumerAffairs.com
November 23, 2009
Once upon a
time, in a kinder, gentler era, TV commercials never mentioned the
competition by name, preferring to identify it only as "Brand X." Today,
competing companies often go head to head in bruising, no holds barred
claims and counter claims.
The latest dust-up between advertisers involves AT&T and Verizon. Verizon's TV commercials compare its 3G coverage map to what it says is AT&T's 3G coverage map, showing huge gaps in AT&T's coverage.
AT&T has now responded with its own campaign, refuting the Verizon claims as false. More importantly, the company is refuting the claims in another, off-camera venue - a courtroom.
Earlier this month AT&T sued Verizon over its "There's A Map For That" ad campaign, saying it unfairly suggests the white space depicted in the AT&T map falsely suggests that AT&T has no service in those areas. The commercial compares the two company's 3G service areas, but AT&T lawyers argue the distinction is lost on most consumers watching a 60 second commercial.
The Verizon-AT&T tussle is but one example. The New York Times reports complaints about competitors' ads, filed with the advertising industry's main watchdog, could set a record this year. So far in 2009, there have been 82 formal complaints. The number has been increasing every year.
Companies are increasingly unwilling to ignore competitors ad claims and are demanding that they provide proof. They're filing suit under the Lanham Act, which forbids false advertising. But how can you really tell if one hair conditioner is actually better for your hair than another?
See You In Court
Whether consumers consider the ads important or not, companies obviously do, and are more apt to use the legal option than in the past, especially if there's a chance of forcing their competitor to admit they were wrong and pull a multi-million dollar ad campaign.
Earlier this year Charter Communications won a court victory when a judge forced DirecTV to change is ads that claimed Charter's bankruptcy would negatively impact consumers' service. Federal Express challenged UPS in court over the latter's claim that its service was more reliable.
In the age of the Internet, when consumers can easily research consumer products and make more informed decisions, companies seem to place even more stock in their advertising campaigns - and those of the competition. But it's far from clear how much consumers are swayed by these 60-second pitches.
In fact, an analysis of consumer complaints to ConsumerAffairs.com reveals very little discussion of companies advertising campaigns. Rather, the preponderance of complaints has to do with a negative consumer experience with a particular product or service.
Often the complaint centers on customer service, which many companies have outsourced overseas to save money. It's tempting to speculate that companies spending more on customer service and less on attack ad campaigns would be better off in the long run.
