On May 23, 2023, the 1st Civil Court of Valdivia granted the lawsuit for unfair competition filed by Aproval against The Not Company, ruling in favor of the Chilean dairy industry. This first instance ruling, which revolved around the product “Not Milk,” resulted in a ban on the commercialization of this product for the sued company, along with other restrictions on the use of the trademark.
However, on January 17th of this current year, the Court of Appeals of Valdivia reversed the initial decision by deciding on the appeal filed by The Not Company against the judgment that confirmed the company was taking undue advantage of the reputation of others, misleading consumers, and disseminating incorrect or false information about its products.
Among the main arguments given by the Court to reverse this decision is that The Not Company stands out for informing about the origin of its products. Therefore, it is not presumable that regular consumers of cow’s milk would opt for a drink of vegetable origin, such as Not Milk. Additionally, the court noted that terms like “milk” or the figure of the cow are frequently used in the market in different contexts.
This lawsuit undoubtedly raises an interesting debate on the way in which comparative advertising of substitute products should be carried out to avoid damage to the reputation of traditional products.
