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

[Anonymous]

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.

[Author]

August 28, 2009 at 12:56 PM