My competitor is using my brand as their keyword.
I am running a resort at example.com and when the user type my brand name "example" on Google search my competitor domain is in first position.
Paid Listings Ranking System:
Google's Paid Listings has a very simple equation, in determining the positioning of all of their Paid Listings. Your advert's positioning is referred to as its Ad Rank. This Equation is:
Ad Rank = Quality Score x Bid Amount (CPC)
Simply put, the higher your Ad Rank, the higher up the the Paid Listings you go. In other words, your competitor has a higher Ad Rank score than you.
To improve your competitive levels, you will need to improve your Ad Rank as to increase the chances of your Paid Listing climbing up the Ranks.
Your Quality Score:
Your Quality Score, is a metric Google uses in determining your Paid Listing's:
This metric is scored out of 10!
A few simple ways to improve your Ad Relevancy, are:
If you are creating a new Campaign, it is unlikely your Quality Score will be a perfect 10/10. The reason being, is that Google Ads also factors in a Campaign's Historical Performance. Such factors being an Advert's:
To me, there are 2 primary Benefits of improving your Quality Score:
Pretty self explanatory, this is how much you intend on bidding for your Keywords.
Is it Legal?
There are no rules against this. An Example being, a competitor may have the following Ad Copy:
20% Off Product A. Now 50% Cheaper than Competitor Brand
This summer, pick up Product A with an extra 20% off. Making us 50% cheaper than Competitor Brand.
Not the greatest Ad Copy but you get the idea.
My advice would be:
As with all things marketing, the are no guarantees. That said, the above will certainly help to improve your chances of success.