The Legal Pitfalls of Comparative Advertising in Wine & Champagne and How to Avoid Them

With the festive season fast approaching, wine and Champagne brands often look for creative ways to stand out. One marketing tactic that regularly tempts producers and retailers is comparative advertising – when a business explicitly or implicitly compares one of their products with a product of a competitor.

Comparative advertising is permitted in the UK, but it is subject to strict rules designed to protect consumers and competitors. In the wine and Champagne sector, these rules are shaped by UK advertising law, the CAP Code, and additional protections relating to geographical indications and protected designations of origin.

While comparative claims can be persuasive, they also carry significant legal and reputational risks, particularly in the drinks sector where protected designations, strict labelling laws, and deeply-rooted brand identities collide.

Here’s what you need to know about the risks—and the practical steps to avoid breaching the rules.

Why Comparative Advertising Is a Legal Minefield in the Wine & Champagne Sector

1. UK geographical indications regime

Beverages with a geographic connection or that are made using traditional methods, such as Champagne, Cava, and Prosecco are safeguarded by way of their protected designation of origin (PDO) status under UK and EU law. Even an indirect comparison can risk implying equivalence, superiority, or substitutability, which may be interpreted as misuse of the geographical indications system.

For example, the Delevingne sisters, owners of ‘Della Vite Prosecco’ – a vegan prosecco brand, have received a cease-and-desist letter from Comité Champagne, the trade body representing Champagne producers, over its ‘cheat on champagne’ marketing slogan. Despite not alleging to be a Champagne product, the term Champagne is automatically protected under the UK’s geographical indications scheme meaning that only sparkling wine made in the French region of Champagne can utilise the name.

The protection afforded to the term Champagne has also been seen to extend beyond the food and drink industry, when a UK based flooring company, Young and Ball, had its application to register its trademark ‘Caviar and Champagne flooring’ rejected. Despite arguing that Champagne was simply a colour, the UK Intellectual Property office ruled that the flooring company was attempting to exploit the luxurious reputation associated with the term Champagne.

These examples show just how strictly protected the term Champagne is under the geographical indications scheme and how careful wine producers must be to avoid contravening the law.

2. Risk of Misleading the Consumer

Wine producers must also be cautious not to mislead or potentially mislead consumers in their advertising campaigns in accordance with section 3 of the UK Code of Non-broadcast Advertising (CAP Code).

Misleading comparisons in regard to origin, grape variety, production methods or maturity are common pitfalls in the wine and Champagne industry. Claims that are factually incorrect or ambiguous, or that omit material information, can breach regulatory standards. For instance, claiming that one wine has a ‘better acidity balance than Brand X’ or is of a ‘superior quality to Champagne Y’ would only be a lawful comparative advertisement if it was based on objective and verifiable criteria.

3. Defamation & Denigration of Competitors

Comparative advertisements must also not discredit or denigrate other competitors. Disparaging statements like ‘Brand X uses inferior grapes’ or unlike Brand Y’s cheap, poorly made wines, ours actually meet proper quality standards’ may expose producers to defamation and unlawful comparative advertising claims.

Practical Steps to Avoid Violating Comparative Advertising Rules

1. Be cautious using terms (e.g. Champagne and Prosecco) that have PDO status

You should only reference a PDO product if:

• the reference is factually correct; and
• you follow the product’s specification published on the UK geographical indications scheme registers.

You should avoid:

• using PDO terms as descriptors for non-PDO products; and
• suggesting substitutability between a PDO product and a non-PDO product (e.g. ‘just as good as Champagne’).

2. Base every comparison on objective, measurable, verifiable facts

Comparative advertising can be lawful if comparisons are backed by objective evidence. For instance, safe comparisons include:

• price differences;
• production methods; and
• any measurable attributes e.g. acidity.

You should avoid making subjective claims such as ‘wine X is higher quality than wine Y’ without the verifiable data to back it up.

3. Avoid making derogatory or discrediting statements about a competitor’s product

If a comparison could harm another competitor’s reputation, it is potentially unlawful. Stick to concrete facts and avoid opinion.

4. No misleading the consumer

Focus on how you think the average consumer will interpret your advertising and beware of cherry-picking data which may paint a false narrative. This will ensure compliance with section 3 of the CAP Code.

5. Keep robust documentation

It is good practice to keep up to date documentation that will support any factual claims in your advertisement, for instance, lab test results, pricing data, etc. This means that, if challenged, you will have the necessary documentation to prove the verifiability of your campaign.

6. Only compare like-to-like products

It is lawful to compare products that meet the same needs or serve the same purpose. For example, comparing one mid-range sparkling wine with another mid-range sparkling wine. Avoid making unfair comparisons such as comparing a luxury sparkling wine with a competitors basic low-range version.

7. Compare without directly naming competitors

If in doubt, a safer route is to highlight your products own strengths without referencing a competitor. For instance, ‘produced using the traditional method’ or ‘made with 100% organic Primitivo grapes’. This way, you get the benefit of exhibiting your products strengths without the risk of violating comparative advertising rules.

Comparative Advertising Can Work – But Only When You’re Careful

If done well, comparative advertising can be a powerful way to highlight your products strengths, particularly in a competitive market like wine and Champagne. If done poorly, wine producers could be faced with regulatory action, reputational damage, and complaints.

So, as we approach the festive season, it is time for brands to stay vigilant in their marketing campaigns and avoid falling into the legal pitfalls of comparative advertising.

Frequently asked questions about comparative advertising

Is comparative advertising allowed in the UK?

Yes, comparative advertising can be lawful in the UK provided it is objective, verifiable, not misleading, and complies with the CAP Code and other applicable advertising rules.

What makes comparative advertising misleading?

Comparative advertising may be misleading if it contains inaccurate claims, omits material information, or presents comparisons in a way that could mislead the average consumer.

Why is comparative advertising risky in the wine and Champagne sector?

Because products such as Champagne are protected by designation of origin, comparisons that imply equivalence or substitutability can raise regulatory and legal concerns.

Comparative advertising can be an effective marketing tool, but in highly regulated sectors such as wine and Champagne it requires careful legal consideration. If you are unsure whether a proposed advertising campaign complies with UK advertising rules or the protection afforded to geographical indications and protected designations of origin, our intellectual property team can advise on the legal risks and help ensure your advertising remains compliant.

We publish blogs and social media posts to give a general overview of legal and commercial issues, relevant at the time of publication, which we hope you will find interesting. Please note that legal rules often change depending on the specific facts of a situation. The law also changes over time following changes in legislation or new court cases. We do not actively update our blogs or posts once they are published to reflect changes in the law.