Time Warner Wins Advertising Decision Vs. DirecTV
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A legal dispute between Time Warner Cable and DirecTV over which company provides clearer high-definition image quality could prompt stricter court regulation on false advertising.
The conflict revolves around two commercials aired by DirecTV, a satellite television provider. In one, actress Jessica Simpson, portraying her character Daisy Duke from “The Dukes of Hazzard,” declares: “You’re just not gonna get the best picture out of some fancy big screen TV without DirecTV. It’s broadcast in 1080i.” In the second, actor William Shatner, clad in full “Star Trek: regalia, says, “Settling for cable would be illogical.”
Time Warner Cable sued DirecTV over the ads, claiming that statements by Ms. Simpson and Mr. Shatner imply that DirecTV provides a better image quality than Time Warner. In actuality, the picture quality of DirecTV and Time Warner, as measured in pixels, is equal. DirecTV did not dispute this in the lawsuit, according to court papers.
The Court of Appeals for the 2nd Circuit yesterday upheld a lower court’s decision in favor of Time Warner and went a step further, saying the current legal standards for false advertising are too vague.
“This appeal requires us to clarify certain aspects of our false advertising doctrine,” a three-judge panel wrote. “We hold that an advertisement can be literally false even though it does not explicitly make a false assertion, if the words or image … imply a false message.”
The 29-page decision says that even though the ads never explicitly say DirecTV provides a better image quality than Time Warner, the implication is enough to justify Time Warner’s claims.
Time Warner Cable is the cable franchise holder for New York City, making it the only cable provider for most of the city, according to court papers. Satellite companies such as DirecTV, however, do not need to hold a franchise, and can provide service to any household with a dish. Nationally, Time Warner serves more than 13.4 million customers; DirecTV serves more than 15.6 million, and competition between the two companies is fierce.
