Implication of Advertising Rules on Trade Competition and Consumer Protection in Ethiopia: A Comparative Approach

Abstract

Advertising plays a key role in almost every firm's marketing strategy. It is an important tool and increasingly important for survival in a dynamic, competitive international marketplace and thus, promoters use their maximum effort to curve consumers to products they are advertising. In so doing, promoters may use false or misleading advertisements, may ridicule other competitors, and the like.False advertising occurs when a business misrepresents its own products or services, or misrepresents the products or services of a competitor through either false or misleading statements. It harms not only the customer, but also fair competitors.The paper address objectives of regulating misleading advertising through laws to ensure that advertisements do not distort the facts about the product and mislead the buyer through subtle implications, omissions and, false statements about the quality, quantity, features or other characteristics of the product and also to protect anticompetitive acts.To that effect the paper analyses Ethiopian Competition and Consumer Protection Law and Ethiopian Advertisement Law. In order to elucidate the ideas contained in these legislations the writer sometimes resorts to the laws of other countries experience and international principles. Hence, the paper concludes the Ethiopian advertisement law is poorly drafted. It would be better if the law divides among others, violations of fair trade practice which can be made through advertisements into Unlawful advertisement; Immoral and Abusive advertisement; Misleading and Deceptive advertisement; and Comparing and disparaging advertisement. Keywords: Advertising, trade competition, consumer protection, Ethiopia DOI: 10.7176/NMMC/101-01 Publication date: April 30 th 2022