Unilever, P&G in legal battle over ad claims

At issue are the two companies' ads for their respective anti-dandruff shampoos.

Unilever was the first to file its suit with a Bangkok civil court, charging that P&G's Head & Shoulders advertisement "intentionally misleads consumers into believing that the anti-dandruff shampoo has superior efficiency in reducing dandruff".

"The advertisement also defames and causes damages to the image of Unilever's Clinic Clear anti-dandruff shampoo," the company said in a statement.

P&G's ad compares Head & Shoulders with another brand, claiming that lab tests prove that brand less effective in eliminating dandruff. Although the image of the competing brand is blurred, Unilever says that it is still recognisable as Clinic Clear.

The Anglo-Dutch giant said it asked P&G to correct the ad, citing research by Unilever Global Technical Centre and accredited by an independent agency, showing Clinic Clear to be three times more effective in tackling the leading cause of dandruff. P&G did not respond.

Unilever has asked the court to order P&G to immediately stop broadcasting the commercial and has also demanded 471 million baht (about US$11.6 million) in damages. "The action is aimed at protecting the integrity and dignity of our product, which is the market leader," said Wannipa Bhakdibutra, Unilever managing director for personal care.

P&G, meanwhile, has responded with its own lawsuit, demanding 750 million baht in damages caused to the company's reputation as well as the Head & Shoulders brand.

"We have been appalled by the directness and viciousness of Unilever's attack on our company through their press releases and statements, and are now compelled to defend our company's and our brand's reputation," said managing director Orapim Milindasuta.

"Consumers have a right to know about the differences between brands, and where disputes arise between companies, they should be resolved in an amicable manner, which is what we had attempted to do before Unilever decided to take this matter into the courts."

She said that Unilever reacted to P&G's comparative ad with a "false and misleading" ad claiming Clinic Clear's superiority. "Our data indicates that there is no valid scientific basis to Unilever's claim," she added, citing numerous independent studies supporting Head & Shoulders' assertions.

Thailand's anti-dandruff market is estimated to be worth two billion baht annually, accounting for 31 per cent of the overall shampoo market.

Clinic Clear claims market leadership of the segment in Thailand, with a marketshare of 55.5 per cent in volume terms. Head & Shoulders claims a lead in the global market with a 29 per cent share.