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5/12/2021 - Ad Watchers: What Does it Mean to Have a “Reasonable Basis” Standard?
Advertisers are required to have a “reasonable basis” for their advertising claims, but what is “reasonable” in terms of support and the level and type of evidence needed? In this episode of the Ad Watchers, hosts Hal Hodes and La Toya Sutton break down the standard that helps us determine what is reasonable: the Pfizer Factors. Tune in to learn more about each of the factors that form the flexible framework for advertising law today. -
4/27/2021 - National Advertising Division Recommends Charter Communications Discontinue Spectrum Mobile “Fastest Overall Speeds” Nationwide Claim; Advertiser to Appeal
New York, NY – April 27, 2021 – The National Advertising Division (NAD) determined that evidence offered by Charter Communications to support its claim that Spectrum Mobile delivers the “fastest overall speeds” nationwide was not a good fit. In recommending that the claim be discontinued, NAD found that Charter is not delivering an “overall fastest” (aggregated) speed to the consumer. It is only when the consumer is in certain geographic markets or connected to Spectrum WiFi (at home or via hotspot) that the consumer gains a speed advantage over competing providers. Charter will appeal NAD’s recommendation. The claim that Spectrum Mobile offers “the fastest overall speeds,” which appeared in website advertisements, television, radio, as well as internet commercials, was challenged by AT&T Services.
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4/22/2021 - National Advertising Division Recommends Natural Diamond Council Discontinue Certain Advertising Claims on Benefits of Mined Versus Man-Made Diamonds
New York, NY – April 22, 2021 – The National Advertising Division (NAD) recommended that the Natural Diamond Council discontinue certain advertising claims comparing mined diamonds with man-made diamonds, including the carbon emissions associated with diamond mining compared with diamond manufacturing, the scarcity of mined diamonds, the resale value of mined diamonds versus man-made diamonds, as well as claims that described mined diamonds as “real”, in contrast to man-made diamonds. The claims at issue, which appeared on the Natural Diamond Council’s website and in marketing assets that the advertiser makes available to retailers, were challenged by Diamond Foundry, Inc., a manufacturer of laboratory-grown diamonds (LGDs).
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4/21/2021 - With Great Power Comes Great Responsibility
In the inaugural episode of The Accountability Studio, moderator Mary Engle, Executive Vice President, Policy poses a fundamental question to the leadership of BBB National Programs: Does independent, industry self-regulation really work? Program leaders responded with an empathic ‘yes,’ but also laid out the numerous factors that can contribute to the success or failure of a self-regulatory initiative. Tune in to hear them discuss the problems in the marketplace that led to the creation of each of their programs, how their programs work, and what they think the future of independent industry self-regulation will look like.
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4/15/2021 - NAD Finds Certain Zarbee’s Claims Clearly Identify Honey as The Source of the Cough Soothing Benefit in its Cough Products; Recommends Modification of Others
New York, NY – April 15, 2021 – The National Advertising Division (NAD) determined that certain advertising claims made by Zarbee’s, Inc. for its cough products sufficiently identify that honey is the source of the cough soothing benefit and would not reasonably mislead consumers as to the reason for the product’s cough soothing efficacy. However, NAD recommended modification of other claims to make clear that the cough soothing benefit is attributable to the honey and not the combination of main ingredients. The claims at issue, which appeared on product packaging, website advertising, third-party retailer websites, and on social media, were challenged by Maty’s Healthy Products, LLC.
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4/13/2021 - NuWave Voluntarily Modifies Certain OxyPure Air Purifier Claims Following National Advertising Division Inquiry into Implied COVID-19 Messages
New York, NY – April 13, 2021 – Following an inquiry by the National Advertising Division (NAD) of BBB National Programs, NuWave LLC modified claims on its website and in a YouTube video which conveyed implied messages that its OxyPure Air Purifier is effective against COVID-19. The challenged express claims for the OxyPure Air Purifier were identified through NAD's routine monitoring program.
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4/08/2021 - NAD Recommends J.G. Wentworth Company Modify its “Cash Now” Claims to Clearly and Conspicuously Disclose Material Information about Timing of Payment
New York, NY – April 8, 2021 – The National Advertising Division (NAD) recommends that the J.G. Wentworth Company modify its advertising to disclose that its offer of “cash now,” in exchange for purchase of the customer’s structured settlement or annuity payment rights, is not immediate, but requires a process that takes, on average, seven weeks to complete. Further, NAD recommended that where there is an implied message that a customer’s receipt of the lump sum is immediate, the advertiser should modify its advertising to clearly and conspicuously disclose material information about the cash-delivery delay.
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4/08/2021 - First Day Life Permanently Discontinues Certain Advertising Claims for Daily Enrichment Multivitamin Following National Advertising Division Challenge
New York, NY – April 8, 2021 – First Day Life, Inc. informed the National Advertising Division (NAD) of BBB National Programs that it has permanently discontinued all of the advertising claims and testimonials for the company’s Daily Enrichment Multivitamin that were challenged by the Council of Responsible Nutrition (CRN). CRN also challenged several consumer testimonials relaying parents’ experiences with the vitamins and describing how the product stopped their children’s tantrums and hyperactivity. First Day Life informed NAD that it has permanently discontinued all the challenged claims and testimonials.
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4/07/2021 - National Advertising Division Finds Verizon’s “Fastest 5G in the World” Claim Supported for its 5G Ultra Wideband
New York, NY – April 7, 2021 – The National Advertising Division (NAD) determined that Verizon Communications, Inc. provided a reasonable basis for the comparative performance claim that its 5G Ultra Wideband provides the “Fastest 5G in the World.” NAD concluded that Verizon’s evidence was a good fit for the claim, and that the challenged television commercial clearly and conspicuously discloses that Verizon’s 5G Ultra Wideband is “available only in parts of select cities.” The claim at issue was challenged by AT&T Services, Inc.
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4/07/2021 - Ad Watchers: So, Who’s Making These Advertising Rules?
National Advertising Division (NAD) attorneys Hal Hodes and La Toya Sutton break down the guiding principle behind all NAD decisions: consumer understanding. Hal and La Toya discuss what it means to step into the shoes of the consumer and break down all the factors that NAD takes into consideration during an advertising review that regulators (e.g., the FTC or FDA) may not. -
4/06/2021 - NAD Recommends Certain Modifications to Comparative Advertising for Jetty Insurance Agency’s “Admitted” Surety Bond Product
New York, NY – April 6, 2021 – The National Advertising Division (NAD) recommended that Jetty Insurance Agency, LLC modify its comparative advertising claims to clearly disclose the distinctions between its “admitted” surety bond product and LeaseLock, Inc.’s surplus-line lease insurance product. NAD further recommended that Jetty modify its advertising to avoid conveying unsupported messages regarding the damage coverage limits of the parties’ respective products. The claims at issue, which appeared in digital materials, email, sales presentations, sales sheets, and other advertising for the Jetty Security Deposit Alternative Plan were challenged by LeaseLock, Inc.
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3/31/2021 - NARB Recommends doTERRA Discontinue Certain Health Benefit and “Therapeutic Grade” Essential Oil Claims
New York, NY – March 31, 2021 – A panel of the National Advertising Review Board (NARB) has recommended that doTERRA International, LLC discontinue a “Certified Pure Therapeutic Grade” claim as well as any use of the term “therapeutic grade” to describe doTERRA’s products. The NARB panel recommendation extends to claims that distinguish doTERRA’s essential oils as qualitatively different or more efficacious than those not considered “therapeutic grade.” NARB has also recommended doTERRA discontinue express and implied aromatherapy claims that promote health and wellness benefits from essential oils and doTERRA essential oil products. The advertising at issue had been challenged by S.C. Johnson & Son, Inc. before BBB National Programs’ National Advertising Division (NAD). Following NAD’s decision (Case No. 6420), doTERRA appealed NAD’s recommendation to discontinue some of the claims under review.
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3/30/2021 - National Advertising Division Recommends Diamond Foundry More Clearly Disclose Origin of its Laboratory-Grown Diamonds
New York, NY – March 30, 2021 – The National Advertising Division (NAD) recommended that Diamond Foundry, Inc. modify its advertising by clearly and conspicuously disclosing the origin of Diamond Foundry’s laboratory-grown diamonds (LGDs), and discontinue the use of certain terms that could create confusion about the origin of these LGDs, modify certain website claims to more prominently disclose the man-made origin of its diamonds, and discontinue or modify certain social media claims that its LGDs are “real” diamonds. The claims at issue were challenged by the Natural Diamond Council, an association of the world’s leading diamond companies who represent approximately 75 percent of the world’s rough diamond production.
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3/25/2021 - National Advertising Division Finds Savings Claims for Xfinity Mobile Supported with Modified Disclosures and Recommends Comcast Modify Other Claims
New York, NY – March 25, 2021 – The National Advertising Division (NAD) determined that Comcast Cable Communications provided a reasonable basis for a qualified claim that by switching to Xfinity Mobile wireless customers can “save hundreds” and “up to $400 a year” on their wireless bill. NAD recommended, however, that Comcast disclose the basis of the claim to avoid overstating the comparative benefits. In addition, NAD recommended that Comcast modify certain savings claims that failed to adequately disclose the material differences in the plans compared. NAD also concluded that Comcast’s use of a fully-shaded map of the contiguous United States, in conjunction with its 5G claims, conveys a supported message. However, NAD recommended Comcast modify its marketing email to disclose clearly and conspicuously that 5G is “only available in parts of select cities.” Further, NAD recommended that Comcast modify its advertising to make clear the basis for its “#1 customer satisfaction” claim (a recent American Customer Satisfaction Index survey report) and avoid conveying that this claim is based on or connected to its 5G offering.
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3/24/2021 - National Advertising Division Finds “Best-In-Class” Claims for 2021 Ford Bronco Supported and Recommends Ford Discontinue or Modify Other Claims
New York, NY – March 24, 2021 – The National Advertising Division (NAD) determined that Ford Motor Company provided a reasonable basis for certain “best-in-class” and historical claims, as well as for identifying the 2021 Ford Bronco in its advertising as part of the “medium traditional utilities” class. The claims at issue, which appeared in digital advertising, on Ford’s website, in press releases and a media kit, and in print advertising, were challenged by FCA US LLC, maker of Jeep brand vehicles.
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3/23/2021 - Certain Advertising Claims for FertilitySmart Conceive for Women Dietary Supplement Permanently Discontinued Following NAD Challenge
New York, NY – March 23, 2021 – FertilitySmart informed the National Advertising Division (NAD) that it has permanently discontinued all of the advertising claims for the company’s FertilitySmart Conceive for Women dietary supplement that were challenged by the Council for Responsible Nutrition (CRN). CRN also challenged several consumer testimonials relaying couples’ experiences with infertility and describing how the FertilitySmart product regulated ovulation and helped with conception even after failure with Clomid, IUI, IVF, and other medical interventions.
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3/18/2021 - In Challenge by AT&T, NAD Finds Certain Xfinity 5G Service Limited Availability Disclosures Sufficient and Recommends Comcast Modify Others
New York, NY – March 18, 2021 – The National Advertising Division (NAD) determined that certain website disclosures used in connection with claims for Comcast Cable Communication, Inc.’s Xfinity 5G wireless service clearly and conspicuously disclosed the limited availability of the 5G service at the time. However, NAD recommended that the advertiser modify a challenged Amy Poehler commercial, as well as two other related 5G claims, with more conspicuous disclosures. The claims at issue were challenged by AT&T Services, Inc.
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3/18/2021 - NAD Finds Boost Mobile’s “Talk and Text” Claim Supported; Recommends Certain “Unlimited” Claims for 4G LTE Data Plans Be Discontinued; Advertiser to Appeal
New York, NY – March 18, 2021 – The National Advertising Division (NAD) determined that Boost Mobile supported the “Talk & Text” portion of the claim “Unlimited Data, Talk & Text” for its 4G LTE data plans. The advertising industry watchdog recommended, however, that Boost discontinue the claims “Unlimited SD Streaming,” “Unlimited HD Streaming,” and “Unlimited Data,” because these were not substantiated and could not be cured by a disclosure. Boost will appeal NAD's recommendation regarding its “Unlimited Data” claim. AT&T Services, Inc. challenged Boost’s claims on the basis that the 4G LTE data plans are throttled to 2G speeds after the consumer hits the monthly data cap.
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3/17/2021 - NAD Recommends Goli Nutrition Modify Energy Production Claims for Apple Cider Vinegar Gummies, and Discontinue Skin Health Claims
New York, NY – March 17, 2021 – The National Advertising Division recommended that Goli Nutrition Inc. modify its Apple Cider Vinegar (ACV) Gummies “Vitamin B12 to help support energy production” claim to make it clear that Goli is referring to cellular energy and to avoid conveying the impression that consumers taking its ACV Gummies will feel a noticeable increase in energy or become more energetic. NAD also recommended that Goli discontinue certain skin health claims. These claims were challenged by Pharmavite LLC, a competing manufacturer of Nature Made brand dietary supplements.
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3/17/2021 - Three NAD Fast-Track SWIFT Cases Resolved; One Claim Supported, One Recommendation to Discontinue Claim, One Claim Voluntarily Discontinued
New York, NY – March 17, 2021 – The National Advertising Division (NAD) of BBB National Programs announced the resolution of three new Fast-Track SWIFT cases: T-Mobile challenged Verizon’s depiction of a 5G coverage map, Prose challenged Function’s “over 110,000 5-star product reviews” claim, and Lidl challenged certain Aldi comparative pricing claims. Fast-Track SWIFT is an expedited process designed for single-issue advertising cases.
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