True or false: Accurate and truthful comparative advertising can be pro-competitive because it allows consumers to compare and evaluate competing services.

• A. True
• B. False
• C. Not specified
• D. Only for online ads

Answer: (A)

Accurate comparative advertising informs consumers and reduces information gaps, which helps them evaluate options and make better choices. When comparisons are factual and verifiable, they encourage competition among service providers because firms must back up their claims with evidence and can’t mislead. This can lead to better pricing, quality, and service as providers strive to justify their advantages. The key is that the comparisons are honest, substantiated, and presented in a fair, like-for-like manner. If claims are false or misleading, they undermine trust and the competitive process. So, the statement is true.