Quiznos created a contest for users to submit video ads showing its superiority to Subway. Then Subway sued, saying that some of the ads make false claims. But since Quiznos didn’t make the ads — just solicited them — should they be held liable? The outcome could have deep ramifications for not only user ads, but content as well. The dispute over an ad is fairly standard — companies often sue one another over advertising claims — but the video contest raises a novel legal question: Quiznos did not make the insulting submissions, so should it be held liable for user-generated content created at its behest? If the answer is yes, that could bring a quick death to these popular contests, advertising executives say. Consumer brands like Doritos, Dove, Toyota and Heinz have run promotions of this sort because they generate publicity, usually at a low cost to the advertiser, and sometimes lead to clever spots that work well on television. But the Subway lawsuit, which seeks financial and punitive damages, seems to open a Pandora’s box.http://www.nytimes.com/2008/01/29/business/media/29adco.html?_r=1&ref=media&oref=slogin
http://www.lostremote.com/2008/01/29/subway-sues-over-user-generated-ads/
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