Legal Question in Business Law in Massachusetts

Misleading Statement by Competitor

A competitor's business that provides identical service mainly to college students at a particular University has an FAQ question on their website that states: ''How do our prices compare to other University businesses providing the same service?'' and answers that there is one that charges ''X'' amount per semester. The ''X'' is higher than they charge. We charge less than our competitor. We feel they are misleading people reading this which may be hurting our business. We believe they are implying that they are the cheapest. How do we go about sending them a certified letter officially informing them that we are cheaper. We want to formally let them know that we exist for cheaper so they cannot claim ignorance. We feel it is right to tell them before we file a complaint with the FTC. What law are they violating, if any? Is this a stretch if they do not ''expressly'' say they are cheapest.


Asked on 3/19/08, 11:25 am

2 Answers from Attorneys

Re: Misleading Statement by Competitor

This is a complicated question and I do not have sufficient space to answer your question completely.

If they are not mentioning your company name, then unless you know who X is you can't say they are being deceptive?

If they are mentioning you by name and price and their information is untrue that is deceptive.

If they are simply implying they are the cheapest, but not claiming to be the cheapest, then this is not really actionable.

Without seeing the advertisement it is difficult to say what they have done is simply advertising puffing or a violation of FTC rules or other statutes.

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Answered on 3/19/08, 12:24 pm
Craig J. Tiedemann Kajko, Weisman & Colasanti, LLP

Re: Misleading Statement by Competitor

I think the chances of accomplishing precisely what you want are significantly better if you retain an attorney to draft and send the letter you have in mind. On the facts you've described, a well-drafted attorney letter is likely to do the trick. While a letter from the company itself might also produce results, it is also just as likely to be ignored by the coming company unless/until you take additional steps to show you mean business.

Preparing and sending a forceful, effective letter on your behalf - and then handling any ensuing negotiations to resolve the dispute, then properly "papering" the settlement - would be relatively inexpensive, and probably well worth the cost.

To address the specifics of your inquiry, more facts are needed to say for sure, including whether the competing service is wholly private, or is a public, or quasi-public entity, among other things. Probably threatening claims under the Massachusetts consumer protection statute for unfair deceptive acts or practices, among other things, would be the primary focus of the letter, but there is additional legal leverage available as well. It depends on the surrounding specific facts.

Feel free to contact me directly if you are interested in further exploring effective, cost-efficient ways to nip this in the bud.

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Answered on 3/19/08, 12:30 pm


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