Business 101: Before You Make Bold Claims

Posted on December 8th, 2009

Lawsuits are never a pleasant thing, so it is also in your best interest to exercise caution and prudence when it comes to your advertising campaigns. More specifically, you don’t want to make claims in your print ads and television commercials that may be undermined by another company. You don’t want to claim that you are the “best” at something, unless you have some hard evidence to back up that claim.

One of the better examples that rose to the surface recently comes from Rogers Wireless, one of the major cell phone carriers in Canada. In a series of ads that have appeared in a number of different locations, Rogers exclaimed that it has the most reliable network in Canada. Apparently, Telus took offence to this claim, because it implied that the Telus network was less reliable than the one belonging to Rogers.

I’m not exactly sure what became of the legal action that ensued, but I have noticed that Rogers has changed all of its ads so that they no longer claim that Rogers has the most reliable wireless network in Canada. Instead, the commercials now say that Rogers has just a reliable network (and not necessarily the best). This significantly weakens the impact of the ads, of course. It’s like saying that you’re “good” at something, instead of saying that you are number one.

Before you embark on any kind of marketing campaign, be sure that the claims you make are legitimate and can be justified suitably. Otherwise, you could have an unfortunate and expensive lawsuit on your hands.

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2 Comments

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Comment by Keith McArthur ~ come follow me on twitter @RogersKeith
2009-12-08 15:31:44

I fully agree with your conclusion (yes, companies that are making claims should ensure those claims can be justified) but wanted to share some detail about the Rogers example you cite. I’m with the communications team at Rogers and can vouch that our “most reliable” claim had been proven with years of data and third-party benchmarking.

Telus argued that because its new network is based on the same technology as ours that we lose the right to say we’re the most reliable. We disagreed. We argued in front of the judge that reliability is not something that can be turned on with the flick of a switch.

And in polling by Ipsos, Canadians seemed to agree. Almost all Canadians polled (94%) by Ipsos said that before a carrier can claim to have the most reliable network, it must have a proven track record of delivering a superior network service over time. This supports your thesis. And it supports the justification behind Rogers claims.

 
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Comment by Minnesota Attorney ~ come follow me on twitter @AttorneyMN
2009-12-14 21:02:44

It’s also interesting to note that a lawsuit, no matter how baseless, will be expensive, even if you win. Sometimes when clients come to me and ask whether the law is on their side, I explain that, although the law is on their side, they still may be sued, which could be far more expensive than an alternative option they are considering. Sometimes its best to play it safe, even when both options are legal, when one option faces the risk of being sued.

 

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