Arcadia Consumer Healthcare Violates National Advertising Division Procedures
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New York, NY – November 30, 2020
The National Advertising Division (NAD) of BBB National Programs determined that Arcadia Consumer Healthcare (Arcadia) violated Section I2(b) of the Procedures for the U.S. advertising industry’s process of self-regulation by using the outcome of an NAD case for promotional purposes.
The advertising claims at issue in the case were challenged by Arcadia.
The Procedures specifically state that “[b]y participating in an NAD or NARB proceeding, the parties agree…not to mischaracterize any decision issued or use and/or disseminate such decision for advertising and/or promotional purposes.”
In violation of this agreement, a senior Arcadia sales representative contacted retailers regarding the outcome of the recent NAD case and provided information, including graphics, detailing NAD’s recommendations on challenged claims. NAD determined this was promotional use of the decision.
“Voluntary self-regulation of the advertising industry is a process that requires fair dealing on the part of both parties and an adherence to both the letter and spirit of the process,” said Laura Brett, vice president, NAD and New York office lead for BBB National Programs. “We are disappointed that it is necessary to issue a corrective press release for this clear and egregious violation of our procedures.”
In the underlying case, Arcadia had challenged certain advertising claims made by Advantice Health, LLC for its Kerasal Fungal Nail Renewal product. As a result of Arcadia’s actions, NAD exercised its procedural right to refuse to continue its handling of the case. Therefore, NAD closed the underlying challenge and re-opened it as a monitoring case, removing Arcadia as a party to the challenge.
About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division (NAD), a division of BBB National Programs, provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
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