Separate comparison ad campaigns by pizza chain Domino's and Captain D's Seafood Kitchen have drawn the ire of the different competing brands featured. Subway has issued Domino's Pizza a cease and desist letter for its comparison ad campaign, and Captain D's has received a cease and desist letter from Red Lobster for its comparison ads.
Instead of complying with the cease and desist orders, Domino's and Captain D's have responded with in-your-face campaigns flaunting their initial claims.
Domino's Pizza launched its TV ad campaign Dec. 29, promoting a taste test that found consumers preferred the brand's Oven Baked Sandwiches over Subway's comparable flavors of Fresh Toasted sub sandwiches by a 2-to-1 margin.
Domino's launched its response ads on TV Jan. 21 during the popular American Idol. In the 30-second spot, Domino's chairman and CEO David A. Brandon playfully burns up Subway's letter in one of the ovens used to bake its sandwiches.
Domino's spokesperson Tim McIntyre said Subway issued the cease and desist letter the day after the first ads ran in late December, but Domino's believes it has the evidence to back up its claims.
"Because the claims have no merit, we have ignored them," McIntyre said. "Meanwhile, Subway has taken the issue to the National Advertising Division of the Better Business Bureau, and we have provided all of our research to the NAD to demonstrate the strength of our claim."
McIntyre said the taste tests were conducted by independent research firm Lieberman Research Worldwide. The survey involved more than 900 adults in eight U.S. cities.
According to a December news release from Domino's, the tests compared Domino's Oven Baked Sandwich Philly Cheese Steak, Chicken Bacon Ranch and Italian versions to Subway's Fresh Toasted Sandwich Steak & Cheese, Chicken & Bacon Ranch and Italian BMT varieties.
Subway spokesperson Les Winograd said he was not aware of the cease and desist letter and would look into it, but did not provide further comment.
The Federal Trade Commission's Policy Regarding Comparative Advertising allows and encourages comparative advertising including the naming of competitors as long as there is no attempt to deceive consumers. Disparaging comparisons of the competing brand are permissible as long as the claims are truthful.
Captain D's refuses to pull ads
Captain D's began its comparative ad campaign against casual dining chain Red Lobster in August. Red Lobster, one of several brands owned by parent company Darden Restaurants Inc., sent a cease and desist letter Sept. 3.
Captain D's ads are shot in a parking lot of a Red Lobster, with the chain's logo featured prominently. A Captain D's spokesperson invites customers who have just finished eating at Red Lobster to sample similar meals from Captain D's — and informs them how much money they could have saved if they'd eaten at the quick-service chain.
On Jan. 21, Captain D's sent out e-mail news alerts to its opt-in subscribers featuring a response video informing viewers of Red Lobster's cease and desist letter and proclaiming that Captain D's refused to comply. The video also invited viewers to visit the Web site www.irefusetoceaseanddesist.com for a free "I Refuse to Cease and Desist" T-shirt to the first 1,000 visitors.
Captain D's senior vice president, marketing, Sandy Clingan Smith said the Captain D's ad campaign was intended to promote the brand's quality while comparing it to another brand also known for quality.
"We felt like letting Red Lobster guests talk about the quality and value of our food would be the most credible way to share the message," she said. "In today's economy, we want people to realize we offer a chance to get great seafood at a great price."
Captain D's has not complied with the cease and desist order because the brand is "just trying to give people a choice when they are looking for great tasting seafood," Smith said.
Consumer response to the ad campaign has been positive, with sales increasing since its launch, she said. The brand gave away 1,000 free T-shirts "by lunch time the first day" of the promotion and has received "many supportive e-mails and phone calls from guests."
Rich Jeffers, spokesperson for Darden Restaurants, said the company has submitted the claim to NAD for review, and the matter has been referred to the Federal Trade Commission.
"We have chosen to address it through the proper channels and will take appropriate action based on the outcome of the outgoing process," Jeffers said.
Captain D's Smith said that the company did not participate in the NAD process because "we feel we have met the burden of proof" and that the company is waiting for the decision from the FTC.
