Hindustan Unilever Limited Versus USV Private Limited: An Advertising Skirmish

USV Private Limited (USV), an Indian pharmaceutical company, launched three comparative advertising campaigns for its Sebamed cleansing bar in January 2021, targeting the soap bars of Hindustan Unilever Limited (HUL) based on the bars’ pH values. Without delay, HUL filed a lawsuit against USV on grounds of disparaging its brands, infringing upon its trademarks, and misleading of consumers. The Bombay High Court restrained USV from continuing with the campaigns, but later vacated that order and delivered another order that permitted USV to continue with one of the three campaigns, directed modifications for the other two, and restrained the company from categorizing soaps as “safe” and “not safe” based on their pH values. HUL eventually began a campaign to refute the pH rationale used in USV’s advertisements. USV now had questions to consider: Would consumers buy its Sebamed cleansing bar for the bar’s “ideal” pH level as communicated in the ads, or was it time to change its advertising strategy?

This case can be included in graduate- and executive-level marketing courses, especially for topics related to comparative advertising and advertising law and regulation. The case highlights suitable advertising approaches firms can adopt for newly launched or lesser-known brands in competitive markets. The case discusses the lawsuit between Hindustan Unilever Limited and USV Private Limited and the marketing and legal considerations of comparative advertising. It also touches upon the challenges a fairly new premium brand must address alongside advertising. After working through the case and assignment questions, students will be able to do the following:<ul><li>Understand the concept of comparative advertising, including from marketing and legal perspectives.</li><li>Understand how direct comparisons in advertising can be made based on scientific evidence. </li><li>Analyze and evaluate disputes and lawsuits related to comparative advertising. </li><li> Understand factors that can weaken the impact of such advertising on consumers. </li><li>Develop a suitable advertising strategy that has a positive effect on consumers and safeguards advertisers from possible litigations by competitors.</li><li> Understand how consumers process information in a comparative ad that results in a change in their attitude toward the brand.</li></ul>

• ad campaigns
• comparative ads
• brand disparagement
• trademark infringement
• marketing
• advertising
• advertising law
• legal
• litigation
• dispute
• lawsuit
• court decisions
• advertising strategy