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Lessons Learned the Hard Way: Advertising Mistakes
Here Comes the Sun
Sellers of BluBlocker sunglasses were penalized $50,000 by the FTC in the recent past for violating the Mail and Telephone Order Rule which requires companies accepting mail and telephone orders to ship the product within a specified time period, or notify the buyer of their option to either cancel the order (and receive a refund) or consent to the delay. When J S & A Group, Inc., sellers of BluBlockers, failed to ship sunglasses in compliance with the Rule a complaint was made, and the FTC took action.
The Age Old Question Resolved: Is Fresher Really Better?
In March 1998, the National Advertising Division (NAD) of the Council of Better Business Bureaus determined, in disagreement with challenger Pizza Hut, that Papa John's International's use of the trademarked phrase "Better ingredients. Better pizza.," was not a false superiority claim. Papa John's argued that the phrase did not make a superiority claim but instead communicated the fact that better ingredients will result in a better pizza. Furthermore, Papa John's argued that even if the trademark contained a competitive message, it had substantiation that its pizza was in fact better because of the use of fresher ingredients.
Although the NAD agreed with Papa John's, it did ask that the company narrow the context of its advertising to focus upon the specific type of pizza which was tested (thin and traditional crusts, in this case, as opposed to pan pizza). Pizza Hut, unhappy with the determination of the NAD, took the case to the United States District Court for the Northern District of Texas. The trial judge agreed with Pizza Hut that when engaging in comparative advertising, such as through use of the trademark "Better Ingredients. Better Pizza.," it is unlawful to make false comparisons or engage in misleading advertising. The trial judge ruled that Papa John's had to immediately stop using the phrase on all pizza boxes and delivery vehicles.
Do Cats Have Tastebuds?
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