Competitor has set up 'trade association'

bobbie68

I hope you can help. I don;t want to give too many details so forgive me for being enigmatic but I work in an industry where there is our company & one other offering the same product. My competitor has set up a trade association which some of his friends are on the Board of. There's no information available on their website about the Board & my competitor gets the e-mails that go to Board members although I don't think he's officially on the Board. He advertises himself as the only UK business with XX Trade Association Accreditation and has been using this as a sales pitch. When I asked to join the Association, I was told that I haven't been in business for long enough. I know that he was informed about me applying.

Is this legal? I know it's unethical but is it misrepresentation and can I do anything about it? I feel like setting up my own Trade Association but this does seem very silly...

Bobbie

paddyrg

Set up the UK Official XX Accreditation Board or whatever in response. Fight for customers, and eventually merge or the strongest starves out the weakest.

Alas, that is business. Businesses have very few limits on what they can do - as long as it is profitable and not killing consumers or workers. Thereafter, feel free to sue if you think you have a case (I very much doubt it) or set up in opposition and offer free seminars/find your own gimmick.

Mistral001

Sounds like just a marketing pitch that you can do not much about.

Perhpas if you were able to get a copy of (lby legitimate and legal means|) their constitution and see if there is a clause about length of time you have to be in the business before you can become a member and if there is isn't then you could possibly have a case for legal action. But even if you won, how do you quantify the damages to you by not being in the Association. If the Association has little reputation within the business, the damage to you in loss sales might be very little if anything. You need good solicitor's advice if want to go down that route.

Steering clear and ignore them is the best policy and do not say anything bad about them to anybody for fear of them going after you for slander.

patman99

As one of the earlier posters mentioned. Why not set-up your own T/A, or even better, a 'Guild'. Then when your rival tries to join, tell them their work isn't up to the required standard.

glasgowdan

Just ignore it.

Make sure your branding and quality are spot on, the other competitor can shove it! Shouldn't affect you if you are providing what you say you will.

mo786uk

Firstly - if he has set up the TA with the intention of being the sole member and has no intenion of being a proper TA then it probably is illegal.

You have to consider his motives for doing it - and as you say, it is used as a selling tool to convince customers to sign up with him - so it is obviously there to induce people into a contract by misleading them.

At the end of the day it isn't fair on legitimate businesses or on consumers who may be misled. Therefore I would recommened reporting it to Trading Standards (via Consumer Direct).

The idea that 'its business' and he can do whatever he needs to to win business is rubbish.

It would prbably be an offence under the Consumer protection form unfair trading regs 2008.

InsideInsurance

I very much doubt that a trade association is a protected term nor that there is legislation in place to say what a TA must do. There is a possible argument over misleading consumers or advertising issues but the former would have to have a customer not competitor complaint.

Unfortunately these sorts of practices are common place. There is someone who I know who Martin Lewis used to support and has been on TV with who used to own a company that made a massive deal about the number of awards it had won, mainly for being a consumer champion. The websites header was literally their logo and at least a dozen winner badges. What wasnt mentioned was the fact the majority of them were bought. He introduced me to a pair of individuals who are journalists and run a side enterprise where you pay them £1,000 per award you want to win, you shortlist categories etc and they guarantee you win or you get your money back. Most of the awards coming from trade press and other things that seem reputable. It was part of the companies strategy but I did find it amusing going to the black tie awards dinner to collect the award for Best New Product 2009 when the company in question hadn't even released any products that year.

Mistral001

InsideInsurance wrote: »

I very much doubt that a trade association is a protected term nor that there is legislation in place to say what a TA must do. There is a possible argument over misleading consumers or advertising issues but the former would have to have a customer not competitor complaint.

Unfortunately these sorts of practices are common place. There is someone who I know who Martin Lewis used to support and has been on TV with who used to own a company that made a massive deal about the number of awards it had won, mainly for being a consumer champion. The websites header was literally their logo and at least a dozen winner badges. What wasnt mentioned was the fact the majority of them were bought. He introduced me to a pair of individuals who are journalists and run a side enterprise where you pay them £1,000 per award you want to win, you shortlist categories etc and they guarantee you win or you get your money back. Most of the awards coming from trade press and other things that seem reputable. It was part of the companies strategy but I did find it amusing going to the black tie awards dinner to collect the award for Best New Product 2009 when the company in question hadn't even released any products that year.

On this topic of awards which are bought or self-applied for, it appears to be everywhere these days. In fact it been going on for some time.

I found it strange when I saw my first circular inviting people from my business to apply for awards. I was amazed that they were actually asking you to apply for an award and even more amazed when I saw some quite esteemed people actually doing it and going to those balck-tie events to accept the award when in effect they had nominated themselves.

I always thought awards were actually awarded and not applied for. Changing the name to a competion will not be correct either, as these awards are applied for after the event and besides they would then become winners of a prize and not people awarded an award.

Maybe the press should call them Self-Nominated Awards.

mo786uk

InsideInsurance wrote: »

I very much doubt that a trade association is a protected term nor that there is legislation in place to say what a TA must do. There is a possible argument over misleading consumers or advertising issues but the former would have to have a customer not competitor complaint.

Anyone can bring a complaint to the awareness of the authorities and indeed the authorities will soemtimes scour places looking for misdescriptions themselves.

Businesses making complaints about other businesses is very common and ensuring a level playing field is something that is considered important - especially in these tough times (why should a decent business suffer because others are being deceitful).

As far as the law goes, what is important is to what extent does the made up TA go to influence the consumers decision. Arguably a not known TA will make no difference, but it comes back to the question - why make it up in the first place if it isnt going to influence SOME people if not all?

If someone was claimign approval of a well know TA then it would be an obvious offence, its a bit harder when its a self made up one which no one may have heard of but the mention of it along with a logo may still dupe people into thinking it counts for something - and would therefore still be considered misleading and therefore likely to be illegal.

paddyrg

Mistral001 wrote: »

On this topic of awards which are bought or self-applied for, it appears to be everywhere these days. In fact it been going on for some time.

TA's and award ceremonies are marketing tools controlled by a clique or cabal as a rule though. The Oscars, for instance, are pure marketing, and brilliantly done.

Mistral001

paddyrg wrote: »

TA's and award ceremonies are marketing tools controlled by a clique or cabal as a rule though. The Oscars, for instance, are pure marketing, and brilliantly done.

I take your point, but the awards which I am thinking about are the ones which you apply for yourself. You actaully get an application form and fill it in yourself. At least with the Oscars you are nominated for the award.