smallbusiness.co.uk: Helping your business think big

Businesses are to be protected from misleading advertising by new legislation coming into force on 26 May.

Government regulation will prohibit misleading advertising that identifies a competitor's product and compares it with the advertiser's own.

Claims are deemed to be misleading if they deceive potential business clients and potentially affect their spending or economic behaviour.

While comparative advertising is still permitted, claims must meet certain conditions. For example, the product being compared must be designed for the same purpose.

Traders should not use replica products bearing a trade name or logo.

It is also not permitted for advertisers to take unfair advantage of competitors' reputations, trade names, trademarks or other distinguishing features.

Advertising that fails to comply with these conditions will be deemed misleading - which will become a criminal offence.

The Department for Business, Enterprise and Regulatory Reform is in charge of advertising standards which are mainly controlled through codes of practice.

Complaints about unfair consumer advertising are investigated by the Office of Fair Trading.

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