Comparative advertising in SaaS: opportunity or legal risk?

My SaaS clients often want to write content that includes comparative advertising. This is a subject that appeals to marketing teams: promoting your product in front of a competitor attracts attention and can convince a hesitant prospect.

But while comparison is an effective tool, it remains a sensitive legal field. Poorly prepared, it can quickly turn into costly litigation.

Comparative advertising: legal, but supervised

Under French and European law, comparative advertising is authorized. It is even considered to be a healthy driver of competition. But it is only legal under strict conditions.

The idea is simple: you can compare your SaaS with that of a competitor, but only if the comparison is fair and verifiable. If the campaign contains exaggerations or unprovable claims, it immediately becomes attackable.

The three essential reflexes

To stay on the right side of the line, there are three principles that should guide any comparative advertising campaign:

1. Compare equivalent offers
   You cannot highlight a characteristic that has no equivalent among the competitor. Comparing a full premium offer with a truncated free version would be considered unfair.
2. Rely on objective and verifiable data
   Each statement must be based on a measurable and documented element: speed of execution, number of functionalities, displayed prices, availability rate. Ideally, keep the evidence (screenshots, dated benchmarks) to be able to justify your claims in the event of a dispute.
3. Banish vague or unprovable claims
   Slogans like “the best SaaS on the market” or “simpler than all the others” are not legally acceptable. They may sound catchy, but they expose you to accusations of false advertising.

The risks of poorly controlled comparative advertising

A poorly prepared comparative advertising campaign can backfire in a number of ways:

• Unfair competition action : the targeted competitor can go to court to obtain an immediate end to the campaign.
• Request for damages : if the advertising has damaged its image or its sales, the compensation can be heavy.
• Reputation damage : public litigation can damage the image of your SaaS, even though the initial objective was to promote it.

In the end, the cost of poor comparative advertising can far exceed the marketing budget invested.

How to secure your communication?

Before launching a comparative campaign, take the time to check some points:

• Document your claims : each element must be able to be justified by tangible evidence.
• Specify your sources : an independent benchmark or a credible comparative study reinforces your legitimacy.
• Have your messages proofread : a visit to the legal department (or your lawyer) avoids allowing risky formulations to pass.
• Test your supports : an advertisement broadcast on several channels must maintain the same consistency and the same level of caution.

Well used, a powerful commercial weapon

Comparative advertising, when controlled, remains an effective tool:

• it highlights your strengths in a concrete way,
• it gives clear guidelines to prospects,
• it immediately differentiates you in a competitive market.

A SaaS that objectively demonstrates its speed, price or additional functionalities can score decisive points in a negotiation.

Conclusion

Comparing your SaaS to that of a competitor can be an excellent business strategy... provided you respect the legal framework. Any claim should be accurate, documented, and verifiable.

Well-thought-out comparative advertising attracts attention and accelerates your sales. Poorly-framed advertising exposes you to costly litigation and a loss of credibility.

As a lawyer working with SaaS companies, I can help you secure your marketing campaigns, ensuring that your messages remain effective without crossing the legal red line.

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