MISLEADING & COMPARATIVE ADVERTISING: DIRECTIVE 2006 114 EC Flashcards
(27 cards)
Understand Key Definitions
Especially: Misleading ad, comparative ad, trader
Memorize Conditions for Comparative ads
There are 8 conditions — these are often tested in cases.
ARTICLE 4
Remember Articles 2–4
Most cases are solved by applying Articles 2 (definitions), 3 (misleading ads), and 4 (comparative ads).
ARTICLE 1: PURPOSE
What it says:
This Directive aims to protect traders (businesses) against:
Misleading advertising
Unfair comparative advertising
ARTICLE 2: DEFINITIONS
advertising
misleading advertising
comparative advertising
trader
code owner
Misleading advertising
Definition, main risk & example
Definition: Advertising that lies, hides key info, or gives a false impression
Main risks: Deceives the audience and may hurt competitors
Example: “This cream removes all wrinkles in 3 days” (not true)
Does not need to mention a competitor
Comparative advertising
Definition, main risk, example
Definition: Advertising that mentions or refers to a competitor to show your product is better
Main risks: May break the rules if unfair, untrue, or confusing
Example: “Brand A is better than Brand B”
Must mention or imply a competitor
ARTICLE 3 when is advertising misleading
The ad is misleading if it lies or deceives about:
Product features
(e.g. what it does, how it’s made, where it comes from)
→ “This water is from the Alps” – but it’s from Belgium.
Price or conditions
→ “Only €9.99” but with hidden fees.
Advertiser’s identity/rights
→ Pretending to have awards or approvals.
🧠 What to remember:
An ad doesn’t need to be 100% false — anything that creates the wrong impression and affects business is enough to make it misleading.
Article 4 – Conditions for Comparative Advertising
The 8 Conditions for legal comparative advertising
- Not misleading
- same purpose
- Objective, material, verifiable
- No descrediting
- no designation of origin
- no unfair advantage
- No imitation
- No confusion
The 8 Conditions for Legal Comparative Advertising
- Not misleading
The comparison must be true and accurate.
“Brand A lasts longer than Brand B” → must be provable
The 8 Conditions for Legal Comparative Advertising
Same purpose
Product must be comparable
Can’t compare insurance with banking
The 8 Conditions for Legal Comparative Advertising
Objective, material, verifiable
Comparison must be factual and testable.
“20% more protein” → must be true
The 8 Conditions for Legal Comparative Advertising
No discrediting
Don’t insult or mock the competitor.
“Brand X sucks” = illegal
The 8 Conditions for Legal Comparative Advertising
Same designation of origin
Especially for food/wine.
You can’t compare “Champagne” with regular sparkling wine
The 8 Conditions for Legal Comparative Advertising
No unfair advantage
Don’t exploit another’s reputation.
Don’t say “As good as Apple” to boost yourself
The 8 Conditions for Legal Comparative Advertising
No imitation
You can’t suggest your product is a copy.
Copying packaging or using “like Nutella” lookalikes
The 8 Conditions for Legal Comparative Advertising
No confusion
Don’t make people think you’re the other brand.
Using similar logos, colors, names etc.
Q: What is the main purpose of Directive 2006/114/EC?
A: To protect businesses from misleading advertising and to lay down rules for when comparative advertising is allowed.
Example: A furniture store falsely advertising “biggest prices in town” can hurt competitors unfairly.
Q: What is “advertising” under this directive?
A: Any promotion made by a trader in any form (e.g. ad, email, post) that encourages the supply of goods or services.
Example: A real estate ad promoting apartments = advertising.
Q: What is “misleading advertising”?
A: Ads that deceive or are likely to deceive, and affect the viewer’s decision or harm a competitor.
Example: Claiming a phone is “100% waterproof” when it’s not.
Q: What is “comparative advertising”?
A: Ads that mention or imply a competitor or their products/services.
Example: “Our burgers are bigger than McFast’s!” = comparative advertising.
Q: What are the conditions for legal comparative advertising?
A: It must:
Not be misleading
Compare products with the same purpose
Be objective & verifiable
Not damage or copy competitors
Avoid confusion or unfair advantage
Example: “Brand A is 20% cheaper than Brand B” is fine if true and proven.
Q: What info matters when checking if an ad is misleading?
A: The ad’s claims about:
Product features
Price or terms
Advertiser’s identity or rights
Example: A brand lying about winning awards = misleading.
Q: Can ads use a competitor’s trademark?
A: Yes, only if used objectively to compare — not to confuse or harm.
Example: “Our product is faster than iPhone” = allowed if factual and clear.
