Examples and regulations in Latvia
What is comparative advertising?
The company compares its offering with that of its competitors to highlight its advantages, with the aim of convincing consumers that the advertiser's product is better or more profitable.
One of the most high-profile examples in Latvia was in 2010, when green and yellow men took over television commercials.
How did it end? The CRPC requested advertising to stop, because in some cases, misleading advertising was included, which was recognized as an unfair commercial practice, and the "war" gradually subsided.
COMPARATIVE ADVERTISING
Advertising Law, Chapter III, Article 9
(1) Comparative advertising is any advertising that uses a comparison that directly or indirectly refers to a competitor or the goods or services offered by a competitor.
(2) The comparison shall be made in accordance with the principles of fair competition, using facts that can be proven.
(3) Comparative advertising, [..], is permitted if all of the following conditions are met: it is not misleading [..]; it compares goods or services intended for the same needs or for the same purposes [..]
“MEASURING WITH BASKETS” 2021
One of the most direct examples was the LIDL campaign when entering the Latvian market.
Lidl compared food prices for 36 products with its competitors.
The CRPC reported that in some cases, LIDL's comparisons were not accurate enough because the products were not completely similar and the advertiser received a warning.
Comparative advertising, which allows consumers to find out the price levels of different traders, is both in the interests of consumers and promotes competition, but only under conditions where it does not mislead consumers.
Lidl receives 100,000 euro fine in Lithuania
The LIDL store chain in Lithuania also compared the prices of its own and other stores' products, but the prices were not compared at the same time. Consequently, the advertising was not objective and misled consumers. What is misleading advertising?
MISLEADING ADVERTISING
Advertising Law, Chapter III, Article 8
(1) Misleading advertising is prohibited.
(2) Misleading advertising is advertising which, in any way, including the manner of its presentation, directly or indirectly deceives or is likely to deceive and which, due to its misleading nature, could influence the economic behaviour of a person or which harms or is likely to harm a competitor.
(3) In determining whether an advertisement is misleading, all the features of the advertisement shall be taken into account - the individual components and the overall content, presentation, in particular any information provided in the advertisement regarding the availability, characteristics, function, content, method and date of production or delivery of goods or services, purpose, use, quantity, impact on the environment or human health [..] price [..] advertiser [..]
THE QUESTION MUST BE ANSWERED – WILL THE RISK PAY BACK?
It is important not only to strategically plan communication, but also to make sure that all legal aspects and regulations are followed.
Is it worth risking a company's most important currency – its reputation? In our opinion, no.
While well-planned comparisons can provide advantages, a competitor's response can be even more influential.
FRIENDLY COMPARISON AS COOPERATION
Where is the best cold soup?
This summer's hit – the "battle" between Vilnius and Riga for the status of the best cold soup.
Riga and Vilnius travel agencies often "throw" jokes at each other to position superiority.
A fantastic example that sparked great public engagement and popularity on social media.
Both benefit – additional publicity for the Lithuanian Cold Soup Festival and recognition for Latvia during the tourist season.
REGULATIONS TO BE TAKEN INTO ACCOUNT
- Advertising law
- Law on the Prohibition of Unfair Commercial Practices
- European Union “Unfair Commercial Practices Directive”
- Latvian Advertising Association Code of Ethics
- Consumer Rights and Protection Law
- Competition law
THE BASIS OF SUCCESSFUL MARKETING
TRUST AND RESPECT
Builds long-term relationships with customers based on positive experiences and fair competition
STAY ON THE PULSE
