Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Papa John's International -- Ignore unavailable to you. Want to Upgrade?

To: Mark Z who wrote (30)	1/3/2000 8:50:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 32

Papa John's To Eat its Words 19:20EST By DAVID KOENIG AP Business Writer 01/03/00 -------------------------------------------------------------------------------- DALLAS (AP) -- A federal magistrate on Monday ordered Papa John's to remove its "Better Ingredients, Better Pizza' slogan from storefronts and pizza boxes and pay Pizza Hut $468,000 in damages. Pizza Hut, the industry leader, claimed the slogan and advertising campaign unfairly maligned its product. In November, a jury decided Papa John's advertisements were false and misleading. Federal Magistrate William F. Sanderson Jr., ruling by fax Monday, ordered Louisville-based Papa John's International Inc. to stop using its slogan in ads by Jan. 24, to stop using pizza boxes and other printed material with the phrase by March 3 and remove it from restaurant signs by April 3. The magistrate further forbade Papa John's from ever using the word "better' to describe its pizza, and he barred the company from even comparing its pizza to that of Pizza Hut in future ads. "This is a landmark victory for consumers and Pizza Hut,' said Jonathan Blum, a vice president and spokesman for Dallas-based Pizza Hut's parent company, Tricon Global Restaurants Inc. of Louisville, Ky. Papa John's will ask Sanderson to delay his order while it appeals the jury verdict, a spokeswoman said. She said the company is considering the ruling's impact on earnings. "This isn't going to change anything we're about,' said Papa John's spokeswoman Karen Sherman. "People buy our pizza because of the pizza, not the slogan.' Papa John's spent $300 million promoting the slogan since 1995. Ms. Sherman said the company does not know how much it would cost to remove it. The jury also found that two of Pizza Hut's counter ads were false and misleading in suggesting that Papa John's used substandard ingredients, including old dough. But the magistrate did not levy damages against Pizza Hut. While Pizza Hut sought $12.5 million, the judge could have tripled the damages under a federal law known as the Lanham Act. During the trial, Papa John's officials and attorneys argued that the "Better Ingredients, Better Pizza' slogan was merely puffery -- harmless boasting that consumers expect to see in commercials. Papa John's vice president of marketing, Syl Sosnowski, said the verdict and Monday's ruling could alter advertising. "Can you imagine Chevy being required to prove that its trucks are really 'Like a Rock' ... or Pizza Hut proving it has the 'Best Pizzas Under One Roof,' he said, citing current advertising campaigns. Blum, the Pizza Hut spokesman, said the difference was that Papa John's used ads to compare its product with others and claim superiority, which carries a burden of proof. Pizza Hut's "Best Pizzas Under One Roof' ads, he said, make no such comparisons.