Can My Company Name a Competitor in Its Advertising and Say Our Product Is Better?

Last updated: November 2026. Reviewed by Pavel Kolmogorov, California business litigation attorney (State Bar No. 321018).

Yes. Naming a competitor in an advertisement is lawful under federal and California law if the comparison is truthful and not misleading. (15 U.S.C. § 1125(a)(1)(B); Bus. & Prof. Code, § 17508, subd. (a).) "Faster" and "cheaper" can be read as measurable claims, so make each accurate as worded and hold the proof before the ad runs. Use the competitor's name only to identify its product, not its logo. Kolmogorov Law, P.C. defends advertisers in comparative advertising disputes in Orange County, Los Angeles, and across California.

Call (909) 235-6116 or contact us online to discuss a cease and desist letter or a lawsuit over a comparative ad.

Truthful comparative advertising is lawful

The law does not treat naming a rival as an offense. The Federal Trade Commission's policy statement says the agency encourages the naming of, or reference to, competitors, while requiring clarity and, where necessary, disclosure to avoid deceiving consumers. (16 C.F.R. § 14.15(b).) It adds that disparaging advertising is permissible so long as it is truthful and not deceptive. (16 C.F.R. § 14.15(c)(1).)

So the exposure is in what the ad says, not in whom it names.

The two laws that test a comparison

The federal Lanham Act makes an advertiser liable for misrepresenting the nature, characteristics, or qualities of its own or another person's goods or services in commercial advertising. (15 U.S.C. § 1125(a)(1)(B).) The competitor you named is the party most likely to sue under it.

California's false advertising law prohibits statements the advertiser knows, or by the exercise of reasonable care should know, are untrue or misleading. (Bus. & Prof. Code, § 17500.) A companion section speaks to comparisons directly. It is unlawful to make a false or misleading claim to California consumers that compares a product's effectiveness or safety to that of other brands. (Bus. & Prof. Code, § 17508, subd. (a).) The Attorney General and local prosecutors may demand the evidence behind such a claim. (Bus. & Prof. Code, § 17508, subd. (b).) Section 17500 is also a misdemeanor statute; our work is on the civil side. A violation can also be pleaded under the Unfair Competition Law.

Specific claims need proof; opinions do not

Courts separate puffery from fact. Exaggerated boasting that no reasonable buyer would rely on is not actionable, but a specific and measurable claim is. In one Ninth Circuit case, "Less is More" was puffery, and "50% Less Mowing" was a factual claim the advertiser had to defend. (Southland Sod Farms v. Stover Seed Co. (9th Cir. 1997) 108 F.3d 1134, 1145.)

Apply that to the usual drafts. "The smarter choice" is opinion. "Faster" invites the question of how much, at what task, and measured how. "Cheaper" is a statement about two prices on a particular date. "Twice as fast as" a named product is a claim you should be able to prove on the day it is published.

A claim can also be literally true and still misleading. A comparison of your premium model against their base model, without saying so, is the classic example.

"Tests show" and survey claims

When an ad cites testing, the test becomes the issue. A challenger can prevail by showing that the tests are not reliable enough to support the claim, or that they do not establish the proposition the ad asserts. (Southland Sod Farms, supra, 108 F.3d at p. 1139.)

The second route catches careful companies. A lab result on one model does not support a claim about a whole product line, and a survey of your own customers does not show that "most people prefer" you. Write the claim to fit the data.

Using the competitor's name and logo

Trademark law allows you to use a rival's mark to refer to the rival's own product. Courts call that nominative fair use, and it comes with limits: use no more of the mark than you need, and suggest no sponsorship or endorsement. The Ninth Circuit's own illustration fits advertising. A soft drink maker may compare its product to a competing cola by name, but may not use the competitor's distinctive lettering. (New Kids on the Block v. News America Publishing, Inc. (9th Cir. 1992) 971 F.2d 302, 308, fn. 7.)

In practice that means the name in plain text, and not the logo, colors, or packaging. Our page on trademark defenses sets out the full test, and our page on bidding on a competitor's name in search ads covers a neighboring question.

A checklist before the ad runs

List every factual statement in the ad, including what the images and charts imply.
Put the proof for each one in a dated file before publication.
Compare like with like: same tier, same conditions, same time period.
State the basis where it matters ("based on published list prices as of" a date).
Recheck the ad whenever the competitor changes its price or product.
Keep the criticism on the product. Statements about a rival's honesty or solvency raise the separate claims on our trade libel page.

When the cease and desist letter arrives

Do not pull the campaign by reflex, and do not ignore the letter. Preserve the ad, the substantiation file, and the dates each version ran.

Then sort the challenged statements. Which are opinion? Which are literally true and fully supported? Which are true but could mislead? In my experience the right response is often a mix: stand on the supported claims, show enough proof to make the point, and revise the one line that reaches too far.

The stakes are real. A competitor that wins under the Lanham Act can obtain an injunction, the advertiser's profits, and its own damages, as explained from the plaintiff's side on our page about false advertising lawsuits between competitors. Our guide to responding to a demand letter covers insurance notice and preservation.

What to bring to the first meeting

The ad in every version and channel, with run dates.
The proof you relied on for each claim, and when you obtained it.
The competitor's letter, if any, and your sales figures for the campaign period.

Frequently asked questions

Can my company run ads that name a competitor and say our product is faster and cheaper?

Yes, if both statements are true and you can prove them. Federal and California law permit truthful comparative advertising, and the Federal Trade Commission encourages naming competitors. "Faster" and "cheaper" can be treated as factual claims, so keep dated test results and price records that match the comparison as worded. Use the competitor's name in plain text, without its logo or any hint of endorsement.

Is comparative advertising legal in California?

Yes. California prohibits advertising that is untrue or misleading, and Business and Professions Code section 17508 specifically covers false claims comparing a product's effectiveness or safety with other brands. A comparison that is accurate, current, and fairly presented does not violate those rules. Prosecutors can ask an advertiser for the evidence behind a factual claim.

Can I use a competitor's logo in my advertising?

It is safer not to. In the Ninth Circuit, which includes California, using a rival's mark to identify its product is permitted only if you use no more of the mark than reasonably necessary and do not suggest sponsorship. The name in ordinary type usually satisfies that test. A logo or distinctive lettering often does not.

We received a cease and desist letter over a comparison chart on our website. Do we have to take it down?

Not automatically. A letter is a demand, not a court order. Review each statement in the chart against your proof. If the data is accurate and current, you can respond with the substantiation and keep the chart. If a line is outdated or compares unlike products, fix it quickly, because continuing a misleading claim after notice makes a California or federal case harder to defend.

Do I need proof before making a claim about a competitor's product?

As a practical matter, yes, for any factual claim. Under California law an advertiser is responsible for statements it should have known were untrue or misleading. Under the federal Lanham Act, a claim tied to testing can be defeated by showing the tests do not support it. Gather the evidence first, date it, and keep it.

Talk to a California false advertising attorney

If a competitor has challenged your comparative advertising, or you expect a challenge, call (909) 235-6116 or contact us online. Kolmogorov Law, P.C. is at 327 Magnet, Irvine, CA 92618, and represents businesses in Orange County, Los Angeles, and throughout California. Our IP litigation practice page describes the wider practice.

This page provides general information about federal and California advertising and trademark law and is not legal advice. Outcomes depend on the wording of the ad, the proof behind it, and the court.