[net.audio] Consumers Union

smb@ulysses.UUCP (Steven Bellovin) (03/14/84)

	From: paul@hpfclk.UUCP
	Newsgroups: net.audio
	Message-ID: <76200001@hpfclk.UUCP>
	Date: Mon, 6-Feb-84 09:34:00 EST

	Anyone know what the status is of the lawsuit brought by Bose against
	Consumer's Union ?  Last I heard, Bose had won a lower court ruling.

				  ...ihnp4!hpfcla!paul   Paul Beiser

I don't know what the status of Bose's lawsuit is; however, there was some
information in the February issue that bears on the question.

Two companies, Miller Brewing and Regina [vacuum cleaners] have used
portions of CU's ratings in their ads.  CU sued, and in the Regina case
was granted a preliminary injunction against Regina.  (Miller, on the
other hand, is counter-suing -- it seems that CU's "false and defamatory"
statements about the ad "deprived Miller of the full value of the ad-
vertisement".  Besides, CU's response has "caused consumers to refuse to
purchase Miller products".)  However, an appeals court ruled that the
information in the report on vacuum cleaners was of significant public
interest, and Regina's presentation of it constituted "fair use".  So
the injunction was vacated, and Regina has resumed its ad campaign.

CU says that they "intend to pursue all legal options open".  But they also
say "we now wonder whether further steps are necessary".  They suggest
instead that consumers weigh such violations of CU's policies when making
purchases, and perhaps write the offending companies.  They then go on to
list the appropriate addresses.

Reading between the lines there, I wonder if they've concluded that they're
not likely to win.  Or if they do win, it seems not unlikely to me that
the use of such injunctions would be considered "prior restraint", leaving
them with the alternative of costly lawsuits after the fact.  And of course,
there would still be damage to CU's reputation.