Competitor marketing tactics getting dirty - Help needed
Discussion
Hi People,
I have a client who is having a lot of problems with his direct competitors. His business has been running for 5 years or so but over the last 2 years a few competitors have started up right next door to him.
I personally have nothing against healthy competition and neither does my client but now the competitors seems to have engaged in an internet war.
The competitors are running google ads using his company name. So when people search for his company name; before they get his site in the natural listings, they get a few adds of his competitors. They have registered similar domains to his, etc. Surely, he must be able to do soemthing about it?
Fake press releases have also been put out signed by his competitors, the press releases contain fradulent claims.
Basically they are using a lot of dirty tricks.
He has had a lawyer onto this but so far without much success. I'm not sure what options are left.
Anyone have any ideas? Feedback appreciated.
Deester
I have a client who is having a lot of problems with his direct competitors. His business has been running for 5 years or so but over the last 2 years a few competitors have started up right next door to him.
I personally have nothing against healthy competition and neither does my client but now the competitors seems to have engaged in an internet war.
The competitors are running google ads using his company name. So when people search for his company name; before they get his site in the natural listings, they get a few adds of his competitors. They have registered similar domains to his, etc. Surely, he must be able to do soemthing about it?
Fake press releases have also been put out signed by his competitors, the press releases contain fradulent claims.
Basically they are using a lot of dirty tricks.
He has had a lawyer onto this but so far without much success. I'm not sure what options are left.
Anyone have any ideas? Feedback appreciated.
Deester
It sounds like he needs a new lawyer, with demonstrable experience in this field. I would suggest (without experience):
- Cease & Desist type letters are no use, clearly. He needs to consider a flurry of writs. I don't know what UK law is on deliberatly undermining another business (US law specific laws on it, so I've heard), but there is a high probability that they are breaking some UK law.
- He needs to consider copyright and trademark claims and violations
- He should contact all media outlets relevant (not just Google), if they are running ads that misrepresent (either pretending to be his company, or running ads with false claims.
- He should also consider contacting all suppliers to warn them. Firstly, if there is any indication that the competitors are using his credit facilities with these suppliers, or getting better rates. Secondly, trusted suppliers may be a valuable source of information on what and how the competitor is operating.
- He should investigate approaching the ASA (Advertising Standards Authority).
- He should consider the Trading Standards Authority
- There may also be a route through Companies House. A company is not allowed to register a name (and I think that may include trading names) that deliberately confuse with an existing company.
Now I'm not experienced in these areas, but it may trigger others here with more knowledge
He should also consider how he deals with Clients and Customers.
- With existing customers, he should consider writing them a letter, indicating that he believes someone is undermining his reputation (no need to be specific). Then something along the lines of "I appreciate your business. To be sure of the real McCoy, please call me directly on..."
- He should consider whether to put a formal statement on his website (risky, but may be necessary)
- He should have a script for all customer-facing staff to cover all eventualities. So whether by phone, email or other, if they see something suspicious (customer is asking for something at a ridiculous price, asking for something he can't deliver, or in some way they seem to misunderstand what his company offers), then rather than trying to bluff it, they they identify the situation and explain that someone has been telling them porkies, and bring them back to reality. This of course applies to potential customers who have accidentally got through to the 'right' company).
- Finally, he needs to consider how to reach potential customers who get diverted away from him before they he even gets a chance to speak to them. This is basically aggressive PR, and it may be appropriate to hire a PR Agency skilled in this area.
- Cease & Desist type letters are no use, clearly. He needs to consider a flurry of writs. I don't know what UK law is on deliberatly undermining another business (US law specific laws on it, so I've heard), but there is a high probability that they are breaking some UK law.
- He needs to consider copyright and trademark claims and violations
- He should contact all media outlets relevant (not just Google), if they are running ads that misrepresent (either pretending to be his company, or running ads with false claims.
- He should also consider contacting all suppliers to warn them. Firstly, if there is any indication that the competitors are using his credit facilities with these suppliers, or getting better rates. Secondly, trusted suppliers may be a valuable source of information on what and how the competitor is operating.
- He should investigate approaching the ASA (Advertising Standards Authority).
- He should consider the Trading Standards Authority
- There may also be a route through Companies House. A company is not allowed to register a name (and I think that may include trading names) that deliberately confuse with an existing company.
Now I'm not experienced in these areas, but it may trigger others here with more knowledge
He should also consider how he deals with Clients and Customers.
- With existing customers, he should consider writing them a letter, indicating that he believes someone is undermining his reputation (no need to be specific). Then something along the lines of "I appreciate your business. To be sure of the real McCoy, please call me directly on..."
- He should consider whether to put a formal statement on his website (risky, but may be necessary)
- He should have a script for all customer-facing staff to cover all eventualities. So whether by phone, email or other, if they see something suspicious (customer is asking for something at a ridiculous price, asking for something he can't deliver, or in some way they seem to misunderstand what his company offers), then rather than trying to bluff it, they they identify the situation and explain that someone has been telling them porkies, and bring them back to reality. This of course applies to potential customers who have accidentally got through to the 'right' company).
- Finally, he needs to consider how to reach potential customers who get diverted away from him before they he even gets a chance to speak to them. This is basically aggressive PR, and it may be appropriate to hire a PR Agency skilled in this area.
A bit more
From my old copy of the British Advertising Code:
1.2 The Codes do not apply to:
a) broadcast commercials...
e) classified private advertisements
j) press releases
21.1 Exploitation Of Goodwill
Advertisiers should not make unfair use of the goodwill attached to the trademark, name, brand, or the advertising campaign of any other business
22.1 Imitation
No advertisement should so closely resemble any other that it misleads or causes confusion
(N.B. The Code is self-regulating, so don't expect too much help. It is 9or at least was) administered by the Committee of Advertising Practice - 020-7580-5555)
I would also suggest that the business needs to co-ordinate their campaign.
1) Take time to build up the evidence. Get all the initiatives ready to roll first. Then hit the competitor repeatedly and in a concentrated blitz. ASA one day, Trading Standards the next, Google the next. Bang, bang, bang.
2) He should also consider the value of indirect aggression. Rather than trying to nail the villain directly, hassle his partners, who may be less willing to join battle. A common tactic of big companies who feel they have been defamed on a website is not to challenge the author directly, but threaten the host ISP. In a similar way, he could target Google, target the other advertising outlets, target suppliers. Create a lack of trust between supplier and villain. Indicate the risks they are taking (and their liability of they fail to take action now they know the truth). It may be worth face-to-face meetings with a lawyer in tow, to present the evidence. It may lead to more evidence (potentially of criminal activity). At the very least it should disrupt the competitor's business, perhaps restricting credit lines, or limiting exposure, or creating delays as the supplier undertakes more checks before accepting business from him.
From my old copy of the British Advertising Code:
1.2 The Codes do not apply to:
a) broadcast commercials...
e) classified private advertisements
j) press releases
21.1 Exploitation Of Goodwill
Advertisiers should not make unfair use of the goodwill attached to the trademark, name, brand, or the advertising campaign of any other business
22.1 Imitation
No advertisement should so closely resemble any other that it misleads or causes confusion
(N.B. The Code is self-regulating, so don't expect too much help. It is 9or at least was) administered by the Committee of Advertising Practice - 020-7580-5555)
I would also suggest that the business needs to co-ordinate their campaign.
1) Take time to build up the evidence. Get all the initiatives ready to roll first. Then hit the competitor repeatedly and in a concentrated blitz. ASA one day, Trading Standards the next, Google the next. Bang, bang, bang.
2) He should also consider the value of indirect aggression. Rather than trying to nail the villain directly, hassle his partners, who may be less willing to join battle. A common tactic of big companies who feel they have been defamed on a website is not to challenge the author directly, but threaten the host ISP. In a similar way, he could target Google, target the other advertising outlets, target suppliers. Create a lack of trust between supplier and villain. Indicate the risks they are taking (and their liability of they fail to take action now they know the truth). It may be worth face-to-face meetings with a lawyer in tow, to present the evidence. It may lead to more evidence (potentially of criminal activity). At the very least it should disrupt the competitor's business, perhaps restricting credit lines, or limiting exposure, or creating delays as the supplier undertakes more checks before accepting business from him.
Excellent, fantastic! 
Thank you very much for the info, thats a lot for us to be getting on with.
The lawyer my client used did not look at 90% of the things mentioned above, and the scary thing is he is a highly respected lawyer in this area. I guess he doesn't know much about the online side of things though.
Again, thanks! Much much appreciated!
Thank you very much for the info, thats a lot for us to be getting on with. The lawyer my client used did not look at 90% of the things mentioned above, and the scary thing is he is a highly respected lawyer in this area. I guess he doesn't know much about the online side of things though.
Again, thanks! Much much appreciated!
If the competitor is trading off the name and goodwill of the business in question, and is causing confusion on the part of prospective customers, that constitutes passing off and will be actionable. If they decline to cease doing so after a formal letter of claim, it's time to toddle off to court and get an injunction.
Breach of that will consitute a contempt of court, which is punishable (in theory) by imprisonment - that will make them sit up and take notice!
Breach of that will consitute a contempt of court, which is punishable (in theory) by imprisonment - that will make them sit up and take notice!
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