A succinct summary of the facts. After seeing Defendant’s advertising claiming that its product might prevent influenza, Plaintiff purchased a Carbolic Smoke Ball and followed the manufacturer’s instructions from November 20, 1891, until January 17, 1892, when she became ill with the flu. Plaintiff filed an action to collect the 100 pounds, which the Court determined she was entitled to recover. The defendant filed an appeal.

A brief overview of the Rule of Law. In this case, the court examines whether an advertising gimmick (i.e., the promise to pay 100£ to anybody who contracts influenza while using the Carbolic Smoke Ball) may be deemed an explicit contractual commitment to make a payment under certain circumstances.

It was on November 13, 1891, when the Carbolic Smoke Ball Company of London (Defendant) ran an advertisement in various newspapers claiming that their product, “The Carbolic Smoke Ball,” when used three times daily for two weeks, would prevent colds and influenza. In addition, the manufacturers of the smoke ball promised a 100-pound prize to anybody who had influenza while using their product, guaranteeing this payment by claiming in their advertising that they had placed 1000 pounds in a bank as a demonstration of their honesty and good faith. Plaintiff, Lilli Carlill (Plaintiff), purchased a smoke ball and followed the instructions on how to use it. The plaintiff became ill with the flu a few weeks after she started using the smoke ball.

Lindley, L.J., writing on behalf of the Court of Appeals, observes that the primary question at hand is whether the wording in the Defendant’s advertisement, referring to the 100 £prize, was intended to be an explicit guarantee or, rather, a sales puff with no real substance.

Defendant’s appeal was rejected, and Plaintiff was awarded a sum of one hundred pounds.

While acknowledging that, in the event of ambiguous advertising, wording suggesting payment of a prize is usually considered to be a puff, which has no legal effect. In this particular instance, however, the defendant specifically included a deposit of £1000 in their advertising as a demonstration of their sincerity. As a result of the defendant’s actions, the Court determined that their pledge to the award was a promise supported by their genuineness.

Concurrence. Aspects of contractual consideration are also brought into question by the concurrences of Bowen, Lord Justice (L) and A.L. Smith, Lord Justice (L). These two judges agree that, although Defendant might claim a lack of regard, Plaintiff, in purchasing the Carbolic Smoke Ball and using it as instructed, showed sufficient consideration by enduring the discomfort she suffered as a result of using the device.

The discussion even though sales puffery in ads is usually not meant to establish a contract with prospective product purchasers, this case demonstrates that it did so in this instance because the defendant raised their words to the level of a promise by relying on their sincerity.

Aishwarya Says:

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