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How To Protect Your Products From Disparagement & Unfair CompetitionWritten by: Michael W Hoffman Reputation Level 7
Posted over 2 years ago. 1 helpful vote, 0 comments
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Prove False Statement & DeceptionTo prove false advertising under federal law, a plaintiff-business must first demonstrate that the defendant-competitor made a false statement of fact about its product, and that these advertisements actually deceive or have the tendency to deceive a substantial segment of its audience. 2
Prove Materiality & Interstate CommerceA plaintiff-business must then prove that the deception is material in that it is likely to influence the purchasing decision and that the defendant-competitor caused it’s falsely advertised goods to enter interstate commerce. 3
Proof Of InjuryFinally, the plaintiff-business must prove that it has been or is likely to be injured as a result, either by direct diversion of sales or by a lessening of its good will. 4
Explore State Law Rights In Addition To Protection Under Federal LawThe common law of the State of New Jersey similarly protects against such product disparagement as well. State law and federal law may be asserted in the same action. So, it is important to assert every cause of action potentially applicable whether it is based on state or federal law. 5
Litigation As A Business ToolWhen your business is the victim of product disparagement by an unscrupulous competitor, the judicial process can serve as a “business tool” to at least halt such unfair competition as well as potentially recover the monetary damage suffered. Typically, no business or individual wants to engage in litigation. But, litigation should be viewed as a "business tool" to protect your enterprise investments when unavoidably necessary. Your attorney should handle the matter cost effectively as well as thoroughly and competently. 6
Consult With An AttorneyThis note is not intended as legal advice, but to provide information regarding the law you may be able to put to work for you. You should consult with an attorney to determine whether this law is appropriate for your specific situation. Related Questions3 Attorney answers: 
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