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Schwab Sues TD Waterhouse for Ad Claims

Discount broker Charles Schwab sued TD Waterhouse for ads it ran claiming that Schwab's services cost more, according to SF Gate. Schwab instituted two major price cuts within the past three quarters, and TD Waterhouse's ads started running more than a year ago. A TD Waterhouse spokesman said that the company continued to stand by its ads. Print ads in the campaign tell readers to "switch to TD Waterhouse, the alternative to higher priced brokers like Merrill and Schwab." Charles Schwab himself built his business on positioning his firm against big brokerages like Merrill Lynch.

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