Advertisers frequently make their cases by comparing one product or service to a competitor’s. When that comparison is false or misleading, however, the advertising crosses the line into a type of false advertising called product disparagement. Product disparagement -- also called commercial disparagement, product defamation, trade libel or slander of goods -- is a false statement about a product that hurts its maker. Victims of product disparagement can sue the perpetrators under both state product disparagement laws and the federal Lanham Act, the law that protects trademarks.

Businesses have filed product disparagement lawsuits over:

• False or misleading comparisons in advertising
• False statements about a competing product’s quality, pricing or other aspects
• False accusations of dishonesty, patent infringement or other negative business practices by the competing company
• Placing articles in the media with negative statements about a competitor
• Advertising a product using a logo, packaging or other symbols very similar to those of a competitor
• Online product disparagement and trademark infringement</a>

To win an Illinois product disparagement lawsuit, plaintiffs must show that the defendant intentionally and knowingly made the false or misleading statements and that the falsehood harmed the plaintiff’s profits. Importantly, plaintiffs can claim only demonstrated loss of profits in an Illinois commercial disparagement action. But under the Lanham Act, businesses claiming trademark infringement and false claims by a competitor may also claim the defendant’s profits from the product disparagement, as well as the costs of bring a lawsuit. In some cases, they may claim up to triple their actual damages.

As a full-service Chicago trademark infringement law firm, we help our clients through every step of the case, starting with an initial letter demanding a stop to the offensive advertising. If this does not produce results, we have had success winning pre-trial injunctions requiring the defendant to cease its false advertising. If necessary, however, we are fully prepared to take your case to a court of law. Our firm has decades of experience with complex business litigation, in both state and federal courts and in alternative dispute resolution venues.

If your business is a victim of false or misleading product comparisons, product disparagement or trademark infringement and you’d like to fight back, DiTommaso-Lubin can help. Based in Chicago and Oakbrook Terrace, Illinois, we represent clients throughout Illinois as well as in Wisconsin and Indiana. To set up a free, confidential consultation, please contact us through our Web site or call (630) 333-0000 in Chicago and 1-877-990-4990 anywhere in the United States.