[Direct answer]In the Beijing area, it's not necessarily illegal, but there are clear boundaries. Comparative advertising, if the content is true, objective, and comprehensive, the comparison basis is verifiable, and it does not target specific competitors for disparaging or derogatory evaluation, generally does not constitute a violation of the law. Conversely, if the advertising content is false, selects data one-sidedly, slanders competitors with derogatory language, or misleads consumers through false comparisons, it may constitute commercial defamation prohibited by the Anti-Unfair Competition Law of the People's Republic of China, or constitute false advertising; according to Article 13 of the Advertising Law of the People's Republic of China (amended in 2021), advertisements shall not disparage the goods or services of other producers or operators. In addition, advertisements shall not use absolute terms such as "national-level", "highest-level", or "best". Violators may face administrative penalties, and the infringed party may also claim to stop the infringement, compensate for losses, and eliminate the impact. Therefore, before conducting price comparison campaigns, enterprises should ensure that the data is true, the sources are verifiable, and the statements are objective, and avoid making derogatory evaluations of specific competitors.

1. Problem background and typical scenarios

In a highly competitive market, companies often highlight their own advantages through price comparisons, performance comparisons, and other methods. Some advertisements directly name competitors and claim that their products are "of poor quality" or "unsafe", while others draw conclusions of "overall leadership" based on one-sided test data. Still others use absolutist statements such as "industry-leading" and "lowest online". These practices are prone to trigger disputes over unfair competition. When handling such cases in the Beijing area, the court will review whether the comparative content is true, whether it is misleading, whether it targets specific competitors, and whether it uses derogatory expressions, in order to determine whether it constitutes commercial defamation or false advertising. Understanding the regulatory boundaries of comparative advertising can help companies conduct effective promotions within the framework of compliance.

II. Key points of contention

First, the requirements for truthfulness, objectivity, and verifiability in comparative advertising. Second, the constituting elements and identification standards of commercial defamation. Third, how to handle one-sided comparisons and misleading information. Fourth, the restrictions on the use of absolutist language. Fifth, the connection between administrative penalties and civil compensation.

III. Professional analysis by Henglue Lawyers

Henglue Lawyers believe that the main risks of comparative advertising focus on two aspects: "authenticity" and "derogatory nature". Regarding authenticity, the data, testing methods, and conclusions used for comparison should be objective and verifiable, and should not selectively present favorable data or conceal unfavorable facts, otherwise it may constitute misleading information or false advertising. Regarding derogatory nature, even if some comparison data is authentic, if the advertisement targets a specific competitor in a way that degrades, mocks, or implies that the competitor's products have defects, it may still be deemed as commercial defamation, damaging the competitor's business reputation and product reputation. In practice, common mistakes made by enterprises include: using absolute language; drawing general conclusions based on a single aspect of the indicator; naming specific competitors and using negative comparison charts; and citing data from unknown or outdated sources. Based on the experience of our team in handling intellectual property and unfair competition cases, we suggest that enterprises verify the basis of comparative advertisements before making them, retain the test reports and data sources, use neutral expressions that do not target specific subjects, and conduct compliance reviews before publishing them. If being sued for commercial defamation, the defense focus usually lies in the authenticity, objectivity, and lack of derogatory intent of the content. The specific determination should be based on the advertising content and case evidence, and comply with current effective laws and regulations and judicial rulings.

IV. Practical suggestions and legal basis

Action list: First, ensure that the comparison data is true, comprehensive, and verifiable, and retain the testing methods, reports, and sources; Second, avoid using derogatory or mocking statements against specific competitors; Third, do not use absolutist terms such as "national-level", "top-level", or "best"; Fourth, when citing third-party data, indicate the source and time, and avoid using outdated or unverifiable information; Fifth, conduct a compliance review before publication and promptly fix evidence and evaluate response strategies after being sued. For matters involving intellectual property and corporate compliance, you can refer to the relevant guidelines.Intellectual property and corporate legal consultantsAndBusiness and contract disputes in enterprisesLegal basis: Article 9 and Article 13 of the Advertising Law of the People's Republic of China (amended in 2021), and the provisions on commercial defamation and false advertising in the Anti-Unfair Competition Law of the People's Republic of China. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, the comparative content being true, objective, and verifiable is a prerequisite for the legality of comparative advertising. Secondly, derogatory statements targeting specific competitors may easily constitute commercial defamation. Thirdly, using absolutist language is a high-risk area for advertising compliance and should be avoided. Fourthly, retaining the data sources and test reports is key to responding to complaints and lawsuits. For issues involving intellectual property and corporate compliance, refer to the relevant provisions.Intellectual property and corporate legal advisorsWe provide a comprehensive solution for services, which includes the integration of contracts and business collaborationsBusiness and contract disputes in enterprisesFor matters involving compensation and enforcement, you can refer to the following for more information.Creditor's rights and debts, and enforcementYou can consult us regarding the fixation of evidence and document servicesSpecial services.

VI. Frequently Asked Questions

Q1: Is it illegal to disparage competitors in price comparison ads?

It depends on the content and the way it is presented. If the comparison is true, objective, verifiable, and does not disparage a specific competitor, it is generally not illegal. However, if the content is false, involves one-sided comparisons, or uses derogatory language to defame competitors, it may constitute commercial defamation or unfair competition, and the parties involved may face administrative penalties and civil compensation.

Q2: What should be paid attention to when making comparative advertisements?

There are three points that need to be noted: the comparison should be based on true, comprehensive, and verifiable information, and the test reports and data sources should be preserved; avoid using derogatory statements targeting specific competitors; and refrain from using absolute terms such as "national-level", "top-level", and "best". Conducting a compliance review before publication can effectively reduce risks.

Q3: What is commercial defamation?

It refers to the act of operators fabricating and disseminating false information or misleading information to damage the business reputation and product reputation of competitors. To determine whether such behavior constitutes unfair competition, it is usually necessary to examine whether the information is false or misleading, whether it targets specific competitors, whether it has caused or is likely to cause damage, and whether it has the effect of damaging the business reputation of others.

Q4: Is it illegal to use the slogan "Lowest Price Online"?

There is a high risk involved. Such absolute statements, if unverifiable, may constitute false advertising; even if they are true in the short term, it's difficult to maintain this over the long term, and they may be perceived as misleading consumers. It is recommended to use verifiable, non-absolute statements instead, and to specify the comparison scope and basis for the claims.

Q5: How to deal with commercial defamation lawsuits?

First, we should fix the advertising content, the release process, and the data sources, and demonstrate the authenticity, objectivity, and non-derogatory intent of the comparison content. At the same time, we should evaluate the legal basis of the other party's claims and the consequences of the damage. When necessary, we should entrust professional lawyers to develop litigation or settlement plans to avoid escalating conflicts and expanding losses.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limit. →Intellectual property protection legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.