Can I Compare My Business to Competitors in My Ads?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

Yes, you can compare your business to a competitor, and you can even name them, as long as the comparison is true, not misleading, and backed by proof before it runs. The Federal Trade Commission (FTC) supports truthful comparisons because they help customers decide. A false or unsupported comparison can bring FTC or state action, and competitors can sue you under federal law.

What this means

A comparative claim says you’re better, cheaper, faster, or different than someone else. It can name a competitor (“Lower prices than Acme Plumbing”) or just point to them (“Cheaper than the big chains”).

The FTC’s policy on comparative advertising says:

Truthful comparisons are allowed and encouraged, including naming competitors.
Comparisons must be clear and include disclosures where needed so customers aren’t misled.
Comparative claims are judged like any other ad claim. You need proof before the ad runs (see 11.3.1 Truthful Advertising Claims).

Made-up example: Ridgeview Lawn Co. wants to say “We cost less than other lawn services in town.” It hasn’t checked every competitor’s price, so it can’t prove that. Instead it says “Weekly mowing from $40 for lots up to a quarter acre, with no contract.” That’s specific, true, and easy for customers to compare on their own.

Why it matters

The FTC Act bans deceptive ads, and that includes unfair comparisons.
Competitors can sue. The FTC notes that competitors can bring claims under the Lanham Act, a federal law, over false or misleading comparisons.
State laws apply. State consumer protection and business laws vary. Check with your state attorney general.
Comparisons go stale fast. A competitor changes its price, and your “cheaper than” claim becomes false overnight.
Name use can cause trouble. Using a competitor’s name or logo in a way that suggests you’re connected to them can raise trademark issues (see 8.3.3 Name Confusion Risk).

Who this applies to

Any business that compares itself to others in ads, on its website, in posts, in sales scripts, or on vehicle wraps. If you never compare, make sure your staff and ad agency don’t either.

How to do it

Pick a fact you can measure, like price, hours, response time, or a feature. Avoid vague claims like “better quality.”
Gather proof before you publish: dated price checks, screenshots, published rates, or test results.
Compare like with like. Same service, same size, same terms.
Say what you compared and when, if it isn’t obvious (“Prices checked March 2026 for a standard 3 bedroom cleaning”).
Don’t use a competitor’s logo or suggest you’re connected to them.
Set a review date. Recheck every comparison at least every few months, and pull it if the facts change.
Keep sales talk honest. Train staff to say what you do, not what competitors don’t.

What proof to keep

A file for each comparison claim: the exact words, where it ran, and the proof
Dated screenshots of competitor prices or features you compared
Your review dates and any changes you made
Ad copy approvals

Common mistakes

“Lowest prices in town” without checking every competitor.
Comparing your sale price to a competitor’s regular price.
Using an old price check after the competitor changed rates.
Trashing a competitor with claims you can’t prove, like “they use cheap parts.”
Naming a competitor in a search ad headline in a way that confuses people about who you are. Check the ad platform’s trademark rules too.

When to get help from a pro

Attorney: before running any ad that names a competitor or makes a “best,” “lowest,” or “fastest” claim. Questions to ask:

Is my proof strong enough for this comparison?
Does using this competitor’s name create trademark risk?
What should I do if a competitor sends me a complaint letter?

Bill’s note

[Bill: add a short note. For example, how you help SiteSmarty clients stand out without attacking competitors, or a comparison claim you’ve seen go wrong.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: reviewing SiteSmarty ads and pages for comparison claims and building the proof file]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: a comparison claim and its dated proof]
[Result so far:]

Questions people ask

Can I name a competitor in my ad? Yes, if what you say is true, not misleading, and you have proof. Don’t use their logo or suggest a connection.

Can I say I’m cheaper than another company? Only if you checked their current price for the same service and keep that proof.

Can a competitor sue me over an ad? Yes. Competitors can bring claims under the Lanham Act for false or misleading comparisons.

Is “the best in town” a comparative claim? It can be. If it sounds like a fact someone could measure, you need proof or a named, checkable source.

Audit check

Question: Is every comparison to a competitor true, specific, current, and backed by dated proof?
Pass looks like: Measurable claims with a proof file and a review date for each.
Fail looks like: “Lowest prices” with no price checks, old comparisons, attacks on competitors, or misuse of a competitor’s name or logo.
Evidence to collect: Claim file with proof, ad copy, review dates.

Where this fits

Do this first: 11.3.5 Fake Review Rules, 11.3.1 Truthful Advertising Claims, 7.5 Competitor Analysis

Do this next: 11.4.1 Hazard Identification

Sources

Legal Information Institute, 16 CFR 14.15, "In regard to comparative advertising" (FTC policy statement) (checked October 17, 2026)
Federal Trade Commission, "Advertising FAQ's: A Guide for Small Business" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.