NAD Recommends Fuhu Modify, Discontinue Advertising Claims Challenged by LeapFrog Enterprises; Advertiser Agrees to Do So

New York, NY – March 20, 2013 – The National Advertising Division recommended that Fuhu, Inc., the maker of the Nabi2 children’s tablet, modify or discontinue advertising claims challenged before NAD by LeapFrog Enterprises, Inc., maker of the LeapPad, a competing product. The company has agreed to do so.

NAD is an investigative unit of the advertising industry’s system of self-regulation. It is administered by the Council of Better Business Bureaus.

The challenger maintained that videos posted at the advertiser’s website draw false comparisons between the parties’ tablets by ignoring the LeapPad’s preloaded and downloadable content; misrepresenting its own video content and misrepresenting LeapPad’s durability. The challenger further contended that the advertiser makes these representations in a falsely denigrating manner.

Fuhu disagreed with LeapPad’s characterizations of its video advertising, but advised NAD that it would discontinue or modify the advertising content in question to avoid the review process.

NAD noted its appreciation for the advertiser’s promise to voluntarily discontinue or modify the challenged claims. However, because the advertising at issue was ongoing when NAD opened its case and because the advertiser’s evidence did not make did not make clear which claims would be discontinued and how claims would be modified, NAD addressed the issues raised by the challenger and defended by the advertiser.

Following its review of Fuhu’s advertising, NAD recommended the company discontinue unsupported claims regarding the amount and type of video content contained on the LeapPad and the comparative video content of the parties’ respective products

Regarding the depictions of the of the video content included on the advertiser’s Nabi2, NAD recommended that the advertiser modify these depictions to more narrowly limit them to the actual video content contained on the Nabi2 and to draw a clearer distinction between those programs which are included with the purchase of the Nabi2 and those that can be loaded for additional cost.

NAD found that the advertiser provided a reasonable basis for its claim that its product comes with a bumper included and that the challenger’s “gel skin” is sold separately (as well as the parties’ own respective descriptors of their products as “drop safe” and “scratch safe”).

However, NAD recommended that the advertiser modify the comparison to avoid conveying the unsupported message that the Nabi2, sold with its included bumper is any more durable than the LeapPad when sold without its gel skin.

For the same reason, NAD recommended that the advertiser discontinue its comparison of the Nabi2 as “food safe” to the LeapPad as “???”

Finally, NAD recommended that the portion of the advertiser’s online video depicting the challenger’s LeapPad being tossed into a trash can as well as the use of “raspberry” sound effects accompanying the claims regarding the video content available on the LeapPad, be discontinued.

Fuhu, in its advertiser’s statement, said the company has reviewed the NAD’s conclusions and recommendations, has discontinued and/or modified the advertising at issue and will continue to comply with its recommendations.