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Last year Time Warner Sued DirecTV for false advertising; now it's time for Comcast to join the party

Competition in the cable and television industry is as fierce as it is in the IT industry. This week, two major television giants DirecTV and Comcast go up against each other in a case over false advertising. DirecTV filed a lawsuit against Comcast this week over an ad campaign that DirecTV claims is untrue.

According to the suit, DirecTV charges Comcast with not only false advertising but also deceptive business practices in print, radio and Internet ad campaigns. Comcast's advertisements make claim that satellite subscribers feel that Comcast's cable HDTV service provides higher quality images.

In a bold statement, one of Comcast's ads claim, "Comcast wins the HD Picture Challenge, Satellite customers agree: HD looks better with Comcast."

DirecTV representatives indicated that there's no substantial evidence for Comcast's claim that its service is better. "The magid survey upon which Comcast relies does not provide or sufficiently substantiate the propositions for which Comcast cites the survey," the suit said. "Comcast's advertising and promotional claims, including the aforementioned, are literally false."

Comcast representatives indicated that the company stands behind the results of its survey.

Late last year, Time Warner sued DirecTV for the same, claiming that DirecTV produced false ads. DirecTV produced ads claiming that people would not be able to watch certain NFL football games without subscribing to its services. The ads appeared in newspapers nationwide.



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RE: Regulation
By alifbaa on 5/26/2007 10:13:32 PM , Rating: 3
Capitalism does drive innovation. Capitalism is why the internet, satellite, cable, and FIOS were all invented and mastered here, not anywhere else. Capitalism is the reason why "international" business standards organizations like IEEE are largely based in the US and are always dominated by US companies and interests. Capitalism is the reason why you have enough food in your belly to sit around on your computer and write idiotic posts about how capitalism doesn't work.

What harm's innovation is government regulation. It is government regulation which allowed the cable companies to ride roughshod over consumers throughout the 80's and 90's. It's government regulation which prevented local channels from being broadcast on satellite until only 4 years ago and still prevents you from choosing out of market local stations over your in market stations. It's government regulation which placed so many restrictions in the way of FIOS that it has taken so long for it to get where it is today.



RE: Regulation
By drebo on 5/27/2007 1:34:49 AM , Rating: 2
I think you need to modify your statement a little.

There's a very important word you left out.

Poor government regulation causes problems. Government regulation is harmful when it's controlled by people who are in the pockets of those they're supposed to be regulating.

Government regulation in and of itself is not a bad thing.


RE: Regulation
By Christopher1 on 5/27/2007 7:24:55 AM , Rating: 2
That is very true. Poor government regulation is what causes problems, usually because one of the big boys buys the government in order to make a legalized monopoly or close to it.

Government regulation is not a bad thing, unless they are trying to regulate things they should not get into: sexual activities, what people put into their own bodies, etc.


RE: Regulation
By Oregonian2 on 5/29/2007 7:33:55 PM , Rating: 2
Is government regulation ever done well? Does the government hire the best and the brightest administrators to intelligently lead the regulation of whatever field the particular group is regulating?

In any case, if someone is hired who intimately knows something about the industry being regulated they'll be accused of being "in the pocket" of that industry (whether they are or not). Hire someone who isn't like that, and they're incompetent due to ignorance and will do really stupid things out of that ignorance. Plus things will be done for political pressure reasons, not because they're the right things to do anyway. Especially if the incompetent one is hired.

So yes, government regulation is often necessary, but I can't say that it's done well "as a rule".


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