In today’s competitive business environment, nothing stings quite so much as a competitor’s false advertising campaign. Unless addressed promptly, false advertising claims can inflict short- and long-term damage, suppressing market share and injuring your product’s sales, reputation, and standing.
But an aggrieved company can fight back with the Lanham Act.
False advertising suits brought in federal court under Section 43(a) of the Lanham Act are a potent weapon to combat a competitor’s false and misleading promotional statements. A plaintiff who prevails on a Lanham Act claim can obtain prompt relief that has real and immediate commercial impact, most notably by putting a stop to a competitor’s offending ads. These suits are an effective means not only to protect a company’s business interests, but also to compete for and maintain market share. Corporate counsel should arm themselves with basic knowledge about false advertising suits under the Lanham Act.
1. Who can sue and be sued for false advertising under the Lanham Act?
Generally, companies that are in commercial competition with one another may sue or be sued, no matter the industry or field. Individual consumers, on the other hand, generally lack standing under the Lanham Act and must look elsewhere—primarily to state consumer protection statutes—to challenge advertisements alleged to be false or misleading.
