State RegulationsIL specificDifficulty 3/5
A producer wants to compare his product favorably against a competitor's offering in his marketing. Under the defamation rule of 215 ILCS 5/149, when does product comparison cross the line?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
215 ILCS 5/149 does not forbid fair comparison; it forbids making or circulating false or maliciously critical statements about a competitor that disparage its business. Accurate, non-malicious comparison of genuine policy differences remains lawful, while fabricated or spiteful attacks violate the statute.
Why the other options are wrong
- A) Merely describing a competitor less favorably is not enough; the statute requires falsity or malice before 215 ILCS 5/149 is violated.
- B) The prohibition covers oral and written statements alike; circulation to a particular audience is not an element of the defamation rule.
- D) Regulatory liability does not wait for a private lawsuit; the Director of Insurance can act on the disparagement itself under 215 ILCS 5/149.
Memory hook
Compare freely, but never falsely: the line is falsity plus malice.