During April and May 2006, LG advertised a competition in which the prizes offered were three "trips for two to the final in Germany". The images and phrases used in the advertising were obvious allusions to the FIFA World Cup, and appeared in various formats, including television, print media and on LG's website. The competition was due to close on 12 June.
FIFA's rights protection programme involves the global registration of the World Cup trademarks, as well as the worldwide appointment of legal experts to safeguard against illicit association. Through its South African legal representatives, Adams & Adams, FIFA took steps to protect its sponsors' rights by lodging complaints with the ASA.
"The FIFA World Cup is a sponsored event, and only 15 corporations were granted marketing rights for the event," says Kelly Thompson, partner at Adams & Adams.
"Since LG is not an official sponsor, the first complaint was lodged on the basis that the advertisements were misleading. The general terms and conditions which apply to match tickets prohibit ticket holders from transferring tickets to third parties, in particular as part of a give-away or competition prize. This meant that LG was prohibited from honouring the prize offered."
"The second complaint was lodged on the basis that the advertisement amounted to a breach of the ASA's sponsorship code, which prohibits third parties other than official sponsors from launching event-related sales promotions to give the impression of sponsoring such an event," continues Thompson.
Thompson says the enormous popularity of events like the FIFA World Cup often tempts unauthorised third parties to try to benefit by associating themselves with the events. "With the 2010 FIFA World Cup on the horizon, the public should be aware that FIFA will take action against third parties attempting to benefit from the event without paying sponsorship fees."
