Comparative Advertising

In comparative advertising, a company publicly compares its product or service with other competing products or services. Firms usually compare their products with a single product, but in some situations a product has been compared with multiple competitive products. For example, manufacturers of Tylenol and other over-the-counter (OTC) pain relievers describe their products as better and faster pain relievers than specific, named competing brands or sometimes just use the leading brand words as points of comparison. Although it is not illegal in the United States to name competing brands, it is not wise, because doing so can start self-defeating competitive price wars.

The variety of comparative advertisements includes television, radio, print media, and the Internet. In recent years, various Internet sites have compared product prices and specifications to aid potential buyers make informed decisions. Similarly, buyers also visit different company Web sites to compare prices.

[Page 88]Today it is uncommon for hospitals, other medical facilities, and medical professionals to employ comparative advertising. However, we do not know how competitive the medical field will be in the future. When the medical field is saturated by health care providers, health care providers may resort to comparative advertising. It was once uncommon for attorneys to advertise, but we have seen numerous law firms using advertisements strongly appealing to fear on television and other media during the last decade.