• Paul Peter Nicolai

Competitor Can Sue Over Biased White Paper

A company can bring statutory false advertising claims against a competitor that hyped a white paper criticizing its products without disclosing the defendant had commissioned the study.

WHY THIS IS IMPORTANT…The claim here is not that the report said anything false. The claim is that readers would be left with the impression that the report was neutral when it was in fact sponsored by the company. Whether the company will ultimately prevail is not yet known but the court found there was enough to allow the case to proceed.

This issue is especially important given the increasing concern about the use of endorsements and false reviews on social media and the internet.