HP MUSCLES IN U.S. GOV TO GO AFTER KODAK's INK CLAIMS

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HP MUSCLES IN U.S. GOV TO GO AFTER KODAK's INK CLAIMS

 user 2009-08-28 at 12:52:17 pm Views: 43
  • #22601

    http://www.amateurphotographer.co.uk/news/US_government_set_to_probe_Kodaks_costsaving_claims_news_288360.html
    HP MUSCLES IN U.S. GOV TO GO AFTER KODAK’s INK CLAIMS
    US government set to probe Kodak’s cost-saving claims
    Kodak has defended claims that its photo printers halve costs after the United States advertising watchdog referred the matter to the government’s consumer protection body following a complaint by rival printer manufacturer, HP.The National Advertising Division (NAD) has passed Kodak’s advertising claims for inkjet printers and ink to the Federal Trade Commission for ‘further review’.In a statement the NAD said it was ‘disappointed’ that Kodak had ‘declined to participate in the self-regulatory proceeding’.

    The watchdog added: ‘NAD requested substantiation for claims that consumers will save on average $110 annually on ink by switching to Kodak ink and printers.’However, Kodak is standing by its claims. A US spokesman said: ‘Kodak’s inkjet printer advertising claims are accurate and well substantiated. Our claims are backed by thorough data and testing by independent third parties, information that is widely available to the public online at http://www.PrintAndProsper.com.’Kodak said that the watchdog has upheld its claims on a previous occasion.

    http://www.democratandchronicle.com/article/20090827/BUSINESS/908270324/1001/Kodak+ads+draw+HP+complaint
    Kodak ads draw HP complaint
    Eastman Kodak Co. ads claim that its All-in-One desktop inkjet printer is a lot cheaper to use than competitors’ machines. Now one of those competitors, Hewlett-Packard Co., is saying, “Prove it.”The National Advertising Division of the Council of Better Business Bureaus, a self-policing group for the ad industry, is referring an HP complaint regarding Kodak’s advertising to the Federal Trade Commission after Kodak did not take part in a proceeding on the complaint.

    Specifically, HP claims there is no substantiation for Kodak’s assertion that switching from another printer to its printer and inks will result in sizable savings.”We feel HP’s complaint is nothing more than an attempt to distract us from serving our customers and growing our consumer inkjet business,” said Kodak spokesman David Lanzillo. “Our claims are backed by thorough data and testing by independent third parties, information that is widely available to the public online at http://www.PrintAndProsper.com.”Canon Inc. made a similar complaint with the National Advertising Division in 2008 about Kodak’s ads, but the organization ruled that Kodak “provided reasonable support for its advertising claim.”

    The National Advertising Division in 2008 referred five advertisers to federal agencies for further review out of 179 cases, said spokeswoman Linda Bean. Such referrals come when companies don’t participate in proceedings regarding complaints or when they decline to abide by division recommendations, she said.The FTC, a government consumer protection agency, has the power in cases of false advertising to seek voluntary compliance by a company or initiate a lawsuit.Kodak CEO Antonio Perez has pointed to the company’s desktop inkjet printer line as one its key products for future growth. The inks for the product are manufactured at Eastman Business Park.