Is It Defamation To Mock Your Competitors' Promotional Campaign?
from the so-says-Shaw dept
It's amazing what a little competition can do. Apparently, up in Canada, cable company Shaw started running a promotion a few months ago where they dropped the price of 15Mbps broadband, 200 channels of TV, or voice service to about $10. However, apparently, this was (conveniently) only done in places where Shaw was going head to head with competitor Novus. In response, Novus put together an amusing marketing campaign, using all sorts of social media, encouraging Shaw customers in other regions (where they couldn't get this phenomenal deal) to contact Shaw to ask why not. It's a bit cheeky, but it makes the point: Shaw appears to be dumping its product in areas where it competes with Novus to cause trouble for Novus via predatory pricing.Now, I'm all for competition, so I don't necessarily think that such pricing is a bad thing (though, people should be aware that it's unlikely that those prices can last), but that also means that the ad campaign by Novus is fair game as well. Not to Shaw, apparently. The company has now sued Novus for its marketing campaign, claiming that it's defamation. It's difficult to see how it's defamation to point out your competitors' own promotional pricing, but perhaps I'm missing something. Or maybe Shaw just figures that the defamation suit itself will get more publicity for its $10 offer. Marketing via lawsuit? Still, it seems that in going to court, Shaw may open up some legal doors it's best to avoid. A quick stroll through some online sources suggests that Canada does, in fact, have laws against predatory pricing. Getting this whole campaign more attention might also end up drawing the attention of some regulators, too...
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Filed Under: broadband, canada, dafamation, predatory pricing
Companies: novus, shaw
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I think this is more evidence that broadband is generally COMPLETELY overpriced. So is cable television of course.
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It might be defamation if Novus is accusing Shaw of predatory pricing and saying outright that the prices won't last. They would have to have a basis for a claim that Shaw's prices are temporary. That may be exactly what's happening, but how would you prove it enough to make that claim in an ad?
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Shaw reps will tell you that it only lasts for 1 year. That should be good enough.
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And more to the point, if they sued for that and won, would that then preclude Novus from EVER raising prices in those areas? Because that would be an OUTSTANDING unintended consequence.
One other thing to mention, however:
"Or maybe Shaw just figures that the defamation suit itself will get more publicity for its $10 offer. Marketing via lawsuit?"
This is what REALLY gets my blood boiling. If anything close to this was attempted in my state, I would do everything in my power to bring a class action lawsuit against the company doing so in the name of every tax paying citizen of the state for conspiracy to defraud the state, misuse of public funds, and anything else that made any kind of sense. How DARE this company muck up the publically funded legal system with their bullshit marketing campaigns.
When I am running things, I can assure you my self-appointed inquisitors will have the power to immediately remove the sexual organs of the corporate leadership for any company that attempts to misuse the court system.
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You mean Shaw? I agree, that would be pretty awesome. Shaw might decide to try to settle if they thought they might actually win...
This is what REALLY gets my blood boiling. If anything close to this was attempted in my state, I would do everything in my power to bring a class action lawsuit against the company doing so in the name of every tax paying citizen of the state for conspiracy to defraud the state, misuse of public funds, and anything else that made any kind of sense. How DARE this company muck up the publically funded legal system with their bullshit marketing campaigns.
Not sure why you'd blame the company, or how you would prove their motivation if thats what you're going by. This is why we need legal reforms--to put the cost on the private parties involved, depending on culpability. If a company can do this, its the legislature's fault for allowing such a stupid system to continue.
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Weren't you listening? No proof needed, I'm taking over the country and installing appointed inquisitors, not judges. The lawyers will be slaughtered like some kind of ultra-sleezy Jedi Council! Bwahhahahahahah...
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You'll love him before long!
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Goliath tries to crush David....twitter shitstorm ensues
Novus has already filed lawsuit against Shaw for it's pricing scheme. Shaw's president went on record saying that it wasn't just targeting Novus customers, but the west end of Vancouver's competitive market. So I called up Shaw, because I'm living in the west end, but not in one of Novus' buildings, and asked for the rate. The rep told me, quite defensively, that the deal wasn't available in my building, only certain competitive buildings. I said, "Oh you mean buildings where Novus offers service." He said well not necessarily. I asked if there were any buildings where this deal was offered where Novus wasn't offered...no...I asked him, "If I were already a Shaw customer in one of those 'competitive' buildings, could I switch from my expensive rate to the $10 rate?"...well you get the idea, of course not.
At one point, Shaw had reps waiting outside of said "competitive" buildings, asking residents if they were with Novus, and if they said yes, only then offering them the package. The package is $10 each for high speed internet, hi-def TV and phone. Those prices are an introductory rate that will last for a year. Even if I could get those rates, I would still stick with Novus. At least the reps won't lie to my face.
"I think this is more evidence that broadband is generally COMPLETELY overpriced. So is cable television of course."
While it is overpriced, in this case they are losing money. Other customers are paying $130 to fund this campaign to offer the same thing at $30 to people living in really rich buildings. While it may hurt Novus, I think the poor publicity will hurt them more. We have few other providers here so they don't exactly have a monopoly. Before this I was going to go with Shaw, because I can't get Novus, but now I'll try Telus or Rogers.
Just look at the response at:
http://twitter.com/10buckstoo
http://www.10buckstoo.com/
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Re: Goliath tries to crush David....twitter shitstorm ensues
If you're right, it sounds like a problem that may work itself out.
Except that filing baseless defamation suits should have consequenses...
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Re: Goliath tries to crush David....twitter shitstorm ensues
Think of this as if Microsoft offered Mac users a nice dell laptop for 10 bucks if they would switch. Even with that, most would laugh right at them. I think it will be the same here.
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It is a very nifty marketing idea to let the subsidizing customers know what is going on.
And Shaw's lawsuit will only result in a Streisand Effect.
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I Smite Thee in the Holy Name of Elvis!
Charlie, fetch me my .45!
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Dark Helmet your right
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Re: Dark Helmet your right
1. Deep, muggy southern district: pretty much all of the toothless states
2. The Desert District: includes Texas, Arizona, Nevada, New Mexico, Southern Cali, and all the cacti and scorpions your heart desires
3. The Fuck It's Cold District: Everywhere north of Milwaukee in a straight line from the Great Lakes across the country. Cheese, beef, a self-depricating view of life? It's all there. Oh, and some abhorence called The Mall of America, which probably should ACTUALLY be called the Mall of Ginormous Tourists and Their Whiny Kids
4. The Northeast District: Odd sounding vowels and an overly high opinion of themselves. Plus, the women and ocean have a lot in common: they both can give you crabs
5. The Dark District: Located around Chicago, it will be nicknamed Boobie Central as we'll be importing all of the good looking women from the other districts. Why? For pillows, man, pillows. Because I am Lord Helmet, and my officials and I ought to be able to go to sleep at night resting my head on a gaggle of desirable women.
So, er, which district do you want?
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"And yet, if Apple offered Macbooks for $10, many wouldn't switch either. And I don't know why."
You're on TechDirt and you are wondering why some people might want to avoid Apple? Try reading some of their licensing agreements some time. Or see what happens to battery life on your macbook when you try to run a competitor's OS through bootcamp. Or if you are worried about security, look at the results from the 2008 Pwn2Own conference.
I'll stick with Linux, thanks.
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Predatory pricing
Can someone explain how this makes sense? This is pricing designed to drive a competitor out of business or out of a specific geographic market, after which the prices can be raised to almost any desired level, because there's no longer any competition. How can you be pro competition and also OK with predatory pricing, since the latter destroys the former?
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Tempting as it may be
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