A Study on the Degree of Information Disclosure and Unfair Competition in Comparative Advertisement

Abstract

This study is aimed at consolidating the crossroad between unfair competition concerning the Fair Trade Law and information disclosure requirement concerning comparative advertisement. By examining the information processing approach made by the consumers, advertisers and advertising agencies, effects of communication in comparative advertisement can be revealed more thoroughly. After the annexation of Chinese Taipei entering into WTO, it is likely that increasing comparative advertisement across-borders will load even more burden on consumers, advertisers and law enforcers. Supporting by a multinational comparison on the law enforcement of comparative advertisement among European Union, Germany, Japan and the United States, the legal binding and enacting of information disclosure and unfair competition are carefully studies.

On the consumer side, the acceptability of comparative advertisement is evident especially for highly involved conditions. Both consumers and advertisers favor the fair use of comparative advertisement, but the marketer and advertisers are more adapted to the legal restrictions. Cross-border comparison shows that most of the nations are enacting for the comparative advertisement and drafting guidelines by trial on cases is also inevitable. Combining these two perspectives together, the study summarizes certain appropriate guidelines and legal advices for the Fair Trade Commission to deal with comparative advertisement, which will result in ensuring fair competition both by requiring information disclosure and by permitting creative expression.