Papa John’s, Pizza Hut Ads Deceptive, Jury Says

Papa John’s International Inc. and Tricon Global Restaurants Inc.’s Pizza Hut unit, two of the country’s biggest pizza chains, made deceptive claims about each other’s products in advertising campaigns, a Dallas jury ruled. The panel ruled for Tricon in finding that Papa John’s “Better Ingredients, Better Pizza” slogan was false and misleading, as were its claims about its sauce and dough. However, the jury found a taste-test commercial didn’t deceive consumers. The jury also ruled in favor of Papa John’s, finding that Dallas-based Pizza Hut misled viewers in ads that implied Papa John’s used stale dough in its pizzas. “We feel very good about all of this,” said Tom Morrison, Pizza Hut’s lead attorney. “We did prevail.” Attorneys for Papa John’s weren’t immediately available for comment. Papa John’s shares tumbled $2.19 to close at $33.81 on Nasdaq, while Tricon closed up 81 cents at $43.13 on the New York Stock Exchange. Pizza Hut filed the lawsuit in August 1998 in U.S. District Court in Dallas, claiming Louisville, Ky.-based Papa John’s falsely implied in ads that it uses fresh ingredients and its rivals don’t.