It isn’t the first time one company used advertising to bash a competing brand. It’s not the first time one company sued another for doing so. However, Subway’s suit of Quizno’s is precedent setting for one very important reason. The ads in this particular campaign were generated by users. We call it UGC, or user-generated content.

The New York Times is saying that Subway “contends that the videos, which were posted at a site Quiznos had set up called meatnomeat.com, as well as on iFilm — contained ‘literally false statements’ and depicted Subway in a ‘disparaging manner’.”

The Times is asking one very important question: “Quiznos did not make the insulting submissions, so should it be held liable for user-generated content created at its behest?”

The answer to that question is equally important, because if its in the affirmative, says the Times, that could mean the end of such contests. It’s possible that companies such as Dove, Toyota or Dunkin’ Donuts who’ve run UCG campaigns would be able to continue down that low-cost, high-impact path.

I’d be interested to know your opinion as to whether you feel Subway’s claims are valid. So far as the courts go, I guess we’ll have to assume a wait-and-see posture. In the meantime, here’s one of the many such ads posted to YouTube.

PS: On a somewhat lighter note, but also part of its efforts to become more competitive with rival Subwya, Quinzos  is planning to target women with new products like the Sammie and an emphasize on quality over value.

Filed under: Advertising, Branding, Industry News, Marketing Trends