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Court lays down the law on carpet ads – with implications for all advertisers

By Craig Nelson - 11 Sep 2014

Fancy a carpet with lifetime stain and soil resistance? How about one that won't fade for 25 years? Sounds great, but as usual, the devil is in the detail.

Advertisers are having to rethink how they qualify their claims following the recent Court of Appeal decision in Godfrey Hirst v Cavalier Bremworth. The decision could have far reaching implications for all advertisers.

Advertisers who promote warranties or make 'headline' claims to which qualifications or exclusions apply will be especially affected. This could affect, for example, those advertising in the flooring, electronics, whiteware and automobile industries.

Because the case dealt with wide reaching principles about what constitutes misleading advertising, the Commerce Commission joined the court proceedings and made submissions. The Commission will likely use the decision in this case as a basis to assess carpet advertising across the industry. However, the decision has broader application beyond just carpet and we expect the Commission will in time apply it to all advertisers.

Taking a proactive approach and having adverts checked by experienced lawyers can save time, money … and an unwelcome letter from the Commerce Commission.

Craig Nelson is a specialist in sales and marketing law. He has produced a more detailed report on misleading carpet ads and is available to assist with any online or offline advertising review.