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 12:56:01 pm Views: 44
  • #22463

    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.