Unfair Competition interprets Article 129(4) View the statute →
Commentary · Act 4 of Six

Misleading comparisons that harm a competitor

An enterprise sets its goods or services alongside a competitor's — by naming the competitor, by clear reference, or by obvious innuendo — in a way that creates a false impression and damages the competitor's reputation. Comparative advertising is not prohibited. An accurate, precise comparison helps the customer and is a legitimate tool of competition. What this clause forbids is a comparison that distorts the truth. For example, the maker of a steam iron prints on the box that its product is more powerful than a named competitor's. But an independent measurement, using the very standard cited on the box, shows the competitor's iron to be equal or even superior. Or the maker of a storage bag runs an advertisement: a live fish in the competitor's sealed bag loses water drop by drop, while the maker's own bag holds firm. The advertisement portrays a rapid, permanent leak as an ordinary characteristic of the competitor's product, when in reality it is not.

This note reflects the analysis of the HENGAM team and does not constitute specific legal advice.