Council adopts common position on comparative adverts By Janet McEvoy
BRUSSELS, Nov 9 (Reuter) - The Consumer Council reached
political agreement on a common position on Thursday designed to
prevent companies using unfair comparisons with named rivals to
promote themselves.
"It's possible to say that the American Express card offers
a lower discount than Visa. What they cannot say is that Dash
washes whiter than other detergents. This has not been proven,"
Consumer Affairs Commissioner Emma Bonino told a news
conference.
The Council, mindful of the damage done to consumers by
growing advertising on unregulated "miracle products" which
offer wonders on the basis of no scientific proof, also ordered
the Commission to draw up a study on them by next November.
Bonino said the study would look into the state of the art
of the kind of product which says "you can lose 10 kilos in two
days and make your lover come back to you having lost interest."
"It's indispensable because you are bombarded with this kind
of advertising which promises the earth," Bonino said of the
study. On the basis of the report the Council will decide if and
how to control the products which fall into a grey area between
foodstuffs and medicines.
Other miracle products cited by the Spanish EU presidency
involve cures for excess cholesterol, tension, stress, skin
cures and bracelets which are supposed to eliminate rhumatism.
A Spanish study discussed by the ministers said they were
marketed using distance selling, in health food shops and
pharmacies and to people receiving services in health
clinics, hairdressers and massage parlours.
The EU ministers ware amending an existing EU directive
84/450/EEC on misleading advertising to take account of an
increasing tendency to score commercial points by comparing
one product favourably or unfavourably with another.
The new legislation, which still has to be formally adopted,
says that such "comparative advertising" should be allowed as
long as it is not misleading, it compares goods or services
meeting the same needs or intended for the same purpose and
objectively compares one or more material or feature, such as
price.
"You can compare products which are the same. You cannot
have an advertisement comparing parma ham or ham," Bonino said.
The advertising must also not create confusion on the market
place between an advertiser or a competitor or their trade marks
or bring into disrepute a competitor's trade marks, names or
other distinctive signs.
It also offers protection against unfair use of other
products' origins, so one kind of champagne can compare itself
with another, but Spanish rioja can not compare itself with
champagne.
The Council also adopted resolutions on consumer credit and
consumer education and discussed for the first time plans to
make retailers display prices per unit of products to enable
consumers to compare prices more easily.
The Council will have to come back to that at a future date. REUTER