The Delhi High Court has dismissed an injunction petition filed by Colgate-Palmolive against Hindustan Unilever (HUL) in connection with an advertisement that was comparative and allegedly disparaging. This means that HUL can go ahead with airing the advertisement. Comparative advertisements are allowed under law, but any kind of disparagement caused to a competitor's product can lead to legal action.

The oral care major had dragged HUL to the court for airing a comparative advertisement dated August 9 where the latter claimed that its toothpaste Pepsodent Germicheck was 130 per cent superior to Colgate’s Strong Teeth brand.

The war between the two multinationals got frothier in the Rs 5,500-crore toothpaste market where Colgate enjoys over 50 per cent of the market share, while Pepsodent is at 23 per cent. This is not the first time that HUL has locked horns with Colgate. In late 90s, Colgate and HUL fought a five-year long court battle before deciding to settle it out of the court.

HUL, maker of brands such as Lux, Dove, Ponds and Pepsodent, had launched the advertisement on a public holiday that followed a long weekend. Analysts speculated that this was done to derive maximum benefit and also to avoid any legal action from Advertising Standards Council of India (ASCI).

In 2011, HUL’s Rin detergent took a dig at rival Procter & Gamble's Tide that resulted in the latter moving the court. The ad was pulled out within a few days.

The company has also entered into a stalemate with Reckitt Benckiser's early this year over a similar comparative advertisement. The matter went to Delhi High Court, which then restrained HUL from publishing or airing its Vim liquid dish wash advertisement that disparaged Reckitt Benckiser's Dettol brand.

Priyanka.pani@thehindu.co.in

Related Topics
comment COMMENT NOW