Kodak, HP, Spar Over Kodak Ad Claims

HP has challenged advertising claims made by Kodak that consumers can save an average of $110 annually on ink by using a Kodak printer. Today the Council of Better Business Bureaus' National Advertising Division (NAD) referred the advertisements to the Federal Trade Commission for further review. According to NAD, this decision was reached because Kodak decided "not to participate in an NAD proceeding" that allows for industry self-regulation.

Kodak fired back at its competitor, saying "HP's challenge is not about the truth and accuracy of Kodak's claims, but rather is simply an effort to maintain HP's dominant market presence while it continues to increase its ink prices." It also noted that it had used NAD self-regulation processes in the past to defend against similar claims. The company said it stands by its ad claims and notes that they are "backed by thorough data and testing by independent third parties." It's not surprising that Kodak's competitors are miffed; Kodak's Print and Prosper Web site offers a calculator that it claims can compare printing costs for Kodak's ESP printers against many other makes and models. The "calculator" claims that the HP Officejet 8500 costs $0.07/page compared to ESP's $0.05/page, an annual difference of more than $65. Data for the comparisons comes from Quality Logic, which "provides Software Quality Test Tools and Testing Services that are the standard used for compliance and performance in Digital Imaging and Telecommunications" and whose customers include HP, Canon, and Dell.