NAD Refers Claims Made by New Nordic to FTC Following Compliance Review

New York, NY – March 14, 2016 – The National Advertising Division has referred to the Federal Trade Commission (FTC) advertising claims made by New Nordic U.S.A., Inc. for its Skin Care Collagen Filler dietary supplement. The referral follows a review of the advertiser’s compliance with a previous NAD decision.

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

In the underlying case, NAD recommended that the challenged performance claims and testimonial be discontinued.   In its advertiser’s statement, the advertiser agreed to comply with NAD’s recommendations.

Subsequent to that decision, NAD reviewed a print advertisement that featured claims similar to the claims at issue in the underlying case, including: “Skin Care works from the inside – by nourishing the deep layers of the skin, where traditional skin care treatments seldom reach,” coupled with a visual of many layers of the skin and the claim “skin care in a tablet.”

In response to NAD’s compliance inquiry, the advertiser noted that it is reformulating the product to more closely reflect the results of ingredient studies and said that the new product would be in the marketplace within two months.  Further, New Nordic said the advertisement in question would be discontinued within the same timeframe and replaced with a new advertisement that would better reflect the results of its testing.

NAD noted that the fact that the advertiser is in the process of making modifications to the product formula does not relieve the company of its obligation to abide by the NAD’s recommendations in the underlying case.  Based on the advertiser’s failure to make a bona fide effort to comply with NAD’s recommendations, NAD referred this matter 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.

 

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