Hasta La Creative!

Big packaged-goods companies have been broadly losing share to smaller ones in recent years, according to a study by IRI and Boston Consulting. But lately some have moved to a battlefield where they hold a distinct size advantage — federal courts.

The world’s three biggest packaged-goods companies, facing increased investor pressure over sluggish sales growth, have each sued much-smaller rivals in federal courts this year over ad claims. This comes after years of relying on the lower-cost National Advertising Division of the Council of Better Business Bureaus for such disputes. While some see signs of bullying, the big players say they’re taking appropriate steps to fight “egregiously” false claims.

Unilever’s Oct. 31 lawsuit against Hampton Creek, alleging its Just Mayo brand is masquerading as mayonnaise despite having no eggs, is the latest. That follows Procter & Gamble Co. suing Hello Products in January, alleging the start-up’s “99% Natural” claim on toothpaste was misleading, since 50% of its ingredients were chemically processed. Nestle in May sued Blue Buffalo claiming its ads disparaged Purina products while falsely claiming certain Blue Buffalo products have no animal by-products or grain.

Continue reading at AdAge.com