If Company Y believes Company X is promoting its product as superior, what should Company Y's FIRST action be?

Choosing to perform a thorough analysis of the promotional materials of both products is the most prudent first action for Company Y. This step allows Company Y to objectively assess the claims made by Company X and understand the context of its marketing strategies.

By gathering detailed information and evaluating the specific claims of superiority, Company Y can better determine whether these claims are misleading or false. This analysis is critical because it offers a factual basis for any further actions, whether that encompasses legal measures, competitive marketing strategies, or regulatory reporting. Having this information can strengthen Company Y's position and ensure that any subsequent actions they consider are grounded in fact and specific evidence rather than assumptions or emotions.

Taking any immediate action, such as litigation or regulatory reporting, without first confirming the accuracy and implications of Company X's claims could lead to unnecessary complexities or miscalculations. Additionally, the option to promote its product as superior without understanding the competitive landscape may not be as effective and could potentially backfire if not backed by valid evidence.