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False Advertising Against Your Business

By Amy E. Feldman

PHILADELPHIA (CBS) - If your company's archrival has ads out that you think are false, what can you do?

Two Louisville Kentucky strip clubs are embroiled in an ugly dispute involving some ugly allegations.

According to the lawsuit, Trixie's Lounge placed a highly visible, scrolling message above the entrance to its nightclub that said "Don't go to Godfathers, their girls are ugly and have crabs." Ew. Bold. And Disgusting. And, according to Godfathers untrue and defamatory.

There's a jury I wouldn't want to sit on.

While most competitors ads don't go that far (or that low), there is no doubt that companies place ads to make themselves look better than their competitors. So, if your company has been harmed by what you believe to be a false claim, what are your legal rights?

First, try negotiating so you don't spend legal dollars needlessly. Write a letter in which you identify the false claims and why they are false and demand that the competitor take down the ad by a deadline. If that doesn't work you can file a challenge before the National Advertising Division of the Council of Better Business Bureaus or you can file a lawsuit in federal court, which is when it really gets ugly.

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