Tag Archives: National Advertising Division (NAD)

Register today! Join us for a CLE webinar “Evolving Roles for Self-Regulation of Medical Devices and Health Services”

This CLE webinar offers a unique, inside look at how BBB National Programs’ National Advertising Division (NAD) evaluates medical devices and other health-related products and services. Our panelists will engage in a lively discussion of recent enforcement trends and challenges for manufacturers, and how companies can effectively use the NAD framework to their advantage. In … Continue Reading

A New “Wrinkle” in Native Advertising: NAD Embraces FTC’s “Deceptive Door Opener” Theory

Last week, the National Advertising Division (“NAD”) issued a decision in the realm of online native advertising.  In the action against Joyus, Inc., the NAD was concerned that the company’s advertising for certain products appeared in a format that blurred the line between editorial content and advertising in a way that may confuse consumers.  Joyus … Continue Reading

GALA to Host Forum on U.S. and Canada Advertising Law

Join members of the Global Advertising Lawyers Alliance (GALA) for a free program on important advertising law issues to consider when advertising in the United States and Canada.  Reed Smith’s Stacy Marcus will be part of a list of featured speakers, which includes representatives from the National Advertising Division and Advertising Standards Canada, covering key areas … Continue Reading

NAD Jumps the Shark on Use of Consumer Reviews as Substantiation

Sniffing something fishy in the sea of consumer reviews, the National Advertising Division (NAD) snapped its jaws at advertising claims made in television commercials, infomercials, and on the Web by Euro-Pro Operating for its Shark brand vacuum cleaners. The advertising was brought to the NAD's attention by competing vacuum cleaner manufacturer, Dyson, Inc. The claim at issue was: "America's Most Recommended Vacuum Brand.* *Based on percentage of consumer recommendations for upright vacuums on major national retailer websites through August 2013, U.S. Only." What was special about this case was that Euro-Pro sought to substantiate its "most recommended" claim on aggregated consumer reviews. The first issue was, what did the claim really mean? Dyson said it meant that the Shark is the most recommended vacuum among vacuum cleaner owners, nationwide, and that the claim communicated a comparative message, namely that the Shark was recommended over other brands. Euro-Pro, on the other hand, thought the claim was as clear as Caribbean water: the Shark is "America's Most Recommended Vacuum Brand" "based on percentages of consumer reviews for upright vacuums on major national retailer websites through August 2013." There was nothing comparative about the statement, according to the advertiser. Interestingly, the NAD tended to side with the advertiser's interpretation, namely that the claim "America's Most Recommended Vacuum Brand*" reasonably conveyed a message that Shark is the most recommended vacuum brand among American vacuum cleaner consumers. However, it interpreted the asterisked second part of the claim to be an explanation of how Euro-Pro sourced the data on which it based its claim. So, the Shark wins, right? Not so fast.… Continue Reading

BLURRED LINES: The Evolution of Native Advertising

Driven by the evolution of technology and social media, brand advertisers are increasingly turning to "native advertising" -- a form of paid media in which promoted content is woven into the actual visual design, or fabric, of a website, magazine, or newspaper. The theory is that by providing ads in the context of a user's experience, and designing content that blends in with the media in which it is placed, the promoted content is less intrusive, and more likely to capture the attention of consumers. Of course, because native advertising necessarily blurs traditional lines of editorial and advertising content, regulators have begun to more closely scrutinize the practice, and have expressed concerns about the potential for consumer deception. Earlier this year, for example, the National Advertising Division ("NAD") examined a campaign from Qualcomm, in which it ran banner ads for its Snapdragon processor adjacent to a series of articles that it had sponsored on the Mashable website. For the duration of the campaign, the banner ads included a tag indicating that Qualcomm had sponsored the articles. Once the campaign concluded, however, the tags were removed (even though the articles remained live on Mashable).… Continue Reading

The Risks of ‘Native Advertising’

Kim Kardashian is notorious for setting Twitter trends with her fashion-forward tweets. But would a consumer buy the same product knowing she was paid up to $20,000 for tweeting it? The term "native advertising" refers to when an advertiser masks ads as editorial content in an effort to market more seamlessly to consumers. The intent behind this practice is to make advertisements less intrusive and to associate a brand with an experience.… Continue Reading

The UK and the USA — A Special Relationship

As President Obama visited Ireland and England this week enroute to the G8 meeting in France, much was said about the “special relationship” between the United States and England. Coincidentally, I happened to be in our London office participating in one of the firm’s Consumer Goods and Brands Group Breakfast Seminar Series. The topic was … Continue Reading

Increase in NAD Fee for CBBB Members

Effective March 15, 2010, the Council of Better Business Bureaus (CBBB) will be raising the CBBB Corporate Partner filing fee to $3,500 from $2,500 for filing a NAD challenge. This is the first increase in the Corporate Partner filing fee since 2005 and continues to represent a very significant discount to the filing fee charged … Continue Reading

NAD Challenger’s Fees Go Up for Non-BBB Members

The National Advertising Division (NAD) of the Council of Better Business Bureaus (CBBB) is the premier self-regulatory body for advertising cases in the United States. It handles the majority of contested false advertising cases every year, compared with actions brought under the Lanham Act. In fact, in 2008, the NAD handled 214 cases, including 84 challenges by … Continue Reading

Be a Good Sport!

As anyone who has been through a case at the National Advertising Division (“NAD”) can tell you, bragging’s not allowed. One of the cardinal rules in self-regulation is that you cannot use an NAD decision for advertising purposes. What if you just send the decision around to, say, customers of the competitor you challenged? You … Continue Reading

NAD Tells Juice Seller the Glass Is Half-Empty–To Discontinue Claims

In the heated contest for market share of antioxidant-rich drinks, it’s Pom Wonderful two, competitors nil. The National Advertising Division recently reviewed claims by juice maker Bossa Nova Beverage Group, Inc. concerning its Acai Juice at the request of Pom Wonderful, LLC, which markets pomegranate juice drinks. The NAD concluded that Bossa Nova’s studies did … Continue Reading
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