How to Handle Marketing Claims That May Be Legally Challenged?

Question from mama, How to Handle Marketing Claims That May Be Legally Challenged?

Answer from AI:

When dealing with marketing claims that may be legally challenged, it’s important to balance the potential benefits against the legal risks. In this case, the term “ultimate smoothness” is considered an absolute claim, which could be challenged in court.

Understanding Absolute Claims

An absolute claim is a statement that asserts a product’s superiority without any qualifications. In Australia, the Australian Competition and Consumer Commission (ACCC) regulates advertising claims under the Competition and Consumer Act 2010. The ACCC requires that all advertising and promotional claims be truthful and accurate. If a claim is absolute, it must be able to be substantiated.

Options for Handling the Claim

Given the potential legal risks, there are several options you could consider:

1. Use the claim, but be prepared to remove it if challenged: This approach carries the highest risk. If the claim is challenged and found to be misleading, you could face penalties under the Competition and Consumer Act 2010. You would also need to remove the claim from all marketing materials, which could be costly and time-consuming.
2. Use a different claim: If another claim tested well and carries less legal risk, it might be a safer option. However, this would not take advantage of the predicted sales uplift from the “ultimate smoothness” claim.
3. Reword the claim: Understanding why the claim was popular could help you reword it in a way that is less likely to be challenged. For example, instead of “ultimate smoothness,” you might say “our customers love the smooth feel of our product.”
4. Modify the absolute term: The term “ultimate” is what makes this an absolute claim. Changing this term could reduce the legal risk. For example, “enhanced smoothness” or “improved smoothness” might be less likely to be challenged.

Seeking Legal Advice

Before making a decision, it would be wise to consult with a legal professional. They can provide advice tailored to your specific situation and help you understand the potential legal risks and benefits of each option.

Remember, this information is a general guide and not a substitute for legal advice. You can find more information about advertising and promotional claims on the ACCC’s website.