BBB National Programs Archive
NAD Refers Advertising Claims by LG Electronics to FTC for Further Review; NAD Declines to Reopen LG Case Under New Evidence Rules
New York, NY – Oct. 19, 2018 – The National Advertising Division has referred advertising claims made by LG Electronics USA, Inc., to the Federal Trade Commission (FTC) for further review, following LG’s decision against complying with NAD recommendations regarding claims to “perfect black” and “infinite contrast.”
NAD is an investigative unit of the advertising industry’s system of self-regulation. It is administered by the Council of Better Business Bureaus.
LG initially appealed NAD’s adverse findings to the National Advertising Review Board (NARB). The company later withdrew its appeal and petitioned NAD to reopen the case based on new evidence – a request that follows recent revisions to procedures that govern advertising industry self-regulation.
The company said it now has new evidence to support claims that LG OLED televisions provide “perfect black” and “infinite contrast, evidence that was not available at the time of the original NAD recommendation. After reviewing the new evidence, NAD denied the advertiser’s petition to reopen the challenge.
LG said the company “will not comply with recommendations regarding ‘perfect black’ and ‘infinite contrast’ claims … LG appreciates NAD’s review of claims for the LG Super UHD and LG OLED televisions but disagrees with the decision and recommendation that ‘perfect black’ and ‘infinite contrast’ claims be discontinued.”
The policies and procedures governing self-regulation provide that when an advertiser asserts that it will not comply with NAD’s recommendations, NAD “shall prepare of a review of the facts with relevant exhibits and forward them to the appropriate federal or state law enforcement agency.” Here, the advertising claims at issue have been forwarded to the FTC for further review.
Note: A recommendation by NAD to modify or discontinue a claim is not a finding of wrongdoing and an advertiser’s voluntary discontinuance or modification of claims should not be construed as an admission of impropriety. It is the policy of NAD not to endorse any company, product, or service. Decisions finding that advertising claims have been substantiated should not be construed as endorsements.