BBB National Programs Decision Summaries

New York, NY – June 3, 2009 – The National Advertising Division of the Council of Better Business Bureaus has referred advertising claims made by Oreck Corporation for the Halo vacuum cleaner to the Federal Trade Commission (FTC) for further review, after Oreck declined to participate in an NAD inquiry.

NAD, the advertising industry’s self-regulatory forum, requested substantiation for certain advertising claims following a challenge by Dyson, Inc.

The challenged performance claims, health claims and establishment claims appeared in television advertising, website advertising and in print brochures and included the following:

• “Kill and reduce germs on all of your floors while you vacuum.”
• “Reduced up to 99.9% of bacteria in laboratory testing.”

Advertising for the Halo vacuum cleaner was the subject of an earlier review by NAD, prior to Oreck’s acquisition of certain assets of Halo Technologies. In the previous NAD case, the advertising at issue was published by Halo, challenged by Bissell Home Care and subsequently referred to the FTC for review.

Upon receipt of NAD’s current inquiry, Oreck advised NAD that it would decline to participate in the NAD process. Oreck noted that it is aware of NAD’s prior decision and is presently cooperating with FTC to address its advertising.

However, because the advertiser has declined has declined to participate, NAD has referred the current matter to the FTC, pursuant to Section 2.1 (E) of NAD Procedures.