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ARTICLE · 02 OCTOBER 2019

Don't Hide The Differences In The Products When Doing Comparative Price Advertising

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The court also didn't buy SquareTrade's argument that consumers would understand that companies' products were different.

United StatesMedia, Telecoms, IT, Entertainment

Can you advertise that your product is cheaper than a competitor's product when your product doesn't offer the same features?  Can you use a disclaimer to explain the differences?  These are some of the key issues in a false advertising lawsuit between two companies -- Asurion and SquareTrade -- that sell extended warranties for mobile phones.  

Asurion offers "mobile phone insurance," which covers damage and failures as well as theft and loss.  Asurion's insurance is available for purchase from various wireless carriers.  SquareTrade offers a "protection plan," which provides similar protection, but doesn't cover theft and loss.  

SquareTrade's advertising encouraged consumers to switch to its protection plan through the promise of savings over the insurance offered by wireless carriers.  For example, in one advertisement, Squaretrade claimed that, "SquareTrade Phone Protection is as good as it gets" and "By switching to SquareTrade, your family could save

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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