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Ryanair: The dangers of inaccurate advertising
16 July 2010
Ryanair and its chief executive, have issued an unreserved apology to easyJet founder and shareholder, Sir Stelios Haji-Ioannou, for depicting him as Pinocchio in an advertisement published in the Daily Telegraph, The Guardian and on Ryanair's website.
The advertisement suggested that Sir Stelios was responsible for easyJet’s failure to publish punctuality statistics; a suggestion which was shown to be entirely unfounded.
Although Mr O’Leary did suggest that he and Sir Stelios should resolve their differences with a Sumo wrestling match or a race around Trafalgar Square, in the end a High Court battle was avoided by a more traditional legal settlement. Ryanair agreed to pay Sir Stelios’ costs and damages of £50,100, which will be donated to his philanthropic foundation.
The settlement marks the end of the latest spat between the two prominent businessmen who are renowned in the aviation industry for their acrimonious relations.
A delighted Sir Stelios has celebrated his victory by buying space in a number of national newspapers and issuing a statement referring to Mr O’Leary as “arrogant” and “the ugly face of capitalism” alongside a cartoon portraying a penitent Mr O’Leary kneeling before a priest at confession.
What does this mean?
Referring to competitors when advertising can be an effective, if combative strategy. However, it is essential that every claim made is accurate and can be substantiated, in court if necessary.
There is nothing wrong with drawing comparisons between your own business and that of your rivals, but if you cannot support your assertions, do not be surprised if you find a letter of claim landing on your desk.
Litigation is not the only risk that may arise from controversial advertising campaigns. Both easyJet and Ryanair have previously fallen foul of industry standards in their advertising campaigns, and both companies have been criticised by the Advertising Standards Authority (ASA) for misleading the public.
Any reference to a competitor in your advertising makes it much more likely that a complaint to the ASA will be made against you.
What should you do?
- Think carefully when making any reference to a competitor in your publicity. Are you sure you can back up what you say?
- If you receive a complaint about potentially defamatory or misleading advertising and you are not sure that you can support what you have said, consider making a retraction and/or an apology. Very often this is all that is required to avoid damaging and hugely expensive legal proceedings.
- If you or your company are defamed or misrepresented in a competitor’s advertising, do not wait. Make a complaint as soon as possible to ensure a swift retraction. If no apology is forthcoming, consider a complaint to the ASA and seek legal advice. A letter from a solicitor demanding a retraction and pointing out the costs of legal action is unlikely to be ignored.
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Kate Smith
Solicitor
T: 03700 86 8418
I: +44 (0)1908 48 8418
E: kate.smith@shoosmiths.co.uk