2024 Truth-in-Advertising Roundup: Notable Takeaways for the Year Ahead
Katherine Armstrong, Deputy Director, National Advertising Division, BBB National Programs
When companies are not playing fair, many competitors bring challenges to BBB National Programs’ National Advertising Division (NAD) to level the playing field.
Last year, the Federal Trade Commission aggressively enforced the laws around truth in advertising, prompting many companies to take a close look at their advertising — and their competitors.
Following the truth-in-advertising activity at NAD sheds light on key issues that should be on the radar of professionals in a broad spectrum of industries including technology, beauty, food and supplements.
NAD’s 2024 case decisions put a spotlight on marketing and advertising trends, reflecting the campaigns that sparked consumer engagement and hinting at the kinds of advertising tactics that could be the subject of future potential regulatory actions.
Cases brought to or monitored by NAD involved influencers from various industries, including hair, skin care, dietary supplements and teen and women audiences. As always, NAD applied FTC’s guidelines, emphasizing the need for clear and conspicuous disclosure of material connections between influencers and brands. Cases to review include:
Drunk Elephant (NAD Case #7328): NAD reviewed advertising for Drunk Elephant’s claims that its products are safe for tweens and teens and whether its influencers were making material connection disclosures. NAD determined that Drunk Elephant had a reasonable basis for the claim that 18 of its products are “safe for kids and tweens to use” based on evidence showing the products met guidelines outlined in the European Commission Scientific Committee on Consumer Safety’s Cosmetic Safety Standard.
However, NAD concluded that certain TikTok videos demonstrating and reviewing Drunk Elephant’s B-Goldi Bright Drops did not clearly and conspicuously disclose the material connection between Drunk Elephant and the influencers. Several of the disclosures were visible only if the viewer clicked on the hyperlink “more,” and the words in the disclosure ran together, making it possible that consumers might not understand the disclosure. NAD recommended that Drunk Elephant ensure that influencers who receive free products disclose their material connection to the brand.
Pamprin (NAD Case #7247): Bayer Consumer Health challenged claims made by Focus Consumer Healthcare for Pamprin Botanicals, a dietary supplement for PMS relief, including “clinically tested” and “scientifically tested” assertions. NAD found the supporting study was flawed for a few reasons, including the lack of a control group, and NAD recommended discontinuing these claims. Bayer also challenged claims about the benefits of the product’s ingredients including ashwagandha, magnesium, vitamin B6, turmeric and chaste berry, which NAD found unsupported due to differences in dosage and duration between the studies and the product’s use instructions. NAD recommended that Focus modify the advertising to avoid misleading messages about product superiority and the “naturally good-for-you ingredients” claim. However, NAD did not require changes to the product name or the “tried and trusted” claim.
GuruNanda (NAD Case #7401): GuruNanda challenged Oral Essentials’ claim that its Lumineux mouthwash products are “Certified Non-Toxic,” a claim that appears on the front of the packaging, as well as the related certification from “Made Safe” on the back of the packaging. Non-toxic claims require a high level of support and, as a result, NAD found that the studies submitted were not a good fit for the challenged claim. Among other limitations, the studies addressed only one form of toxicity; contained different ingredients from the marketed product; and there was insufficient information about the criteria for the “Made Safe” certification to support a broad, unqualified “Certified Non-Toxic” claim. Accordingly, NAD recommended that the claims be discontinued.
Zuru Edge (NAD Case #7346): NAD recommended that Zuru Edge modify or discontinue certain claims for its Rascals and Millie Moon diapers following a challenge by Kimberly-Clark. NAD found, among other things, that the “5 Cups Water” demonstrations that appeared on social media posts and featured influencer moms pouring five cups of water on the diapers were not consumer-relevant because water is not an appropriate proxy for urine, and as a result, the demonstrations exaggerated the absorption capabilities of Zuru’s diapers. NAD recommended, among other things, that the demonstrations be discontinued.
NAD’s 2024 case decisions represent what is happening in the market. I have no doubt that many of the issues we saw in 2024 will continue in 2025, but the advertising industry’s creativity means we always see issues that we cannot anticipate.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB and CARU decisions, subscribe to the online archive.
Originally published in SupplySide Supplement Journal
When companies are not playing fair, many competitors bring challenges to BBB National Programs’ National Advertising Division (NAD) to level the playing field.
Last year, the Federal Trade Commission aggressively enforced the laws around truth in advertising, prompting many companies to take a close look at their advertising — and their competitors.
Following the truth-in-advertising activity at NAD sheds light on key issues that should be on the radar of professionals in a broad spectrum of industries including technology, beauty, food and supplements.
NAD’s 2024 case decisions put a spotlight on marketing and advertising trends, reflecting the campaigns that sparked consumer engagement and hinting at the kinds of advertising tactics that could be the subject of future potential regulatory actions.
Influencer Marketing
Influencer marketing continues to be a significant part of most marketing and advertising strategies, leading to scrutiny for both established and broadly known influencers, as well as emerging micro-influencers.Cases brought to or monitored by NAD involved influencers from various industries, including hair, skin care, dietary supplements and teen and women audiences. As always, NAD applied FTC’s guidelines, emphasizing the need for clear and conspicuous disclosure of material connections between influencers and brands. Cases to review include:
Drunk Elephant (NAD Case #7328): NAD reviewed advertising for Drunk Elephant’s claims that its products are safe for tweens and teens and whether its influencers were making material connection disclosures. NAD determined that Drunk Elephant had a reasonable basis for the claim that 18 of its products are “safe for kids and tweens to use” based on evidence showing the products met guidelines outlined in the European Commission Scientific Committee on Consumer Safety’s Cosmetic Safety Standard.
However, NAD concluded that certain TikTok videos demonstrating and reviewing Drunk Elephant’s B-Goldi Bright Drops did not clearly and conspicuously disclose the material connection between Drunk Elephant and the influencers. Several of the disclosures were visible only if the viewer clicked on the hyperlink “more,” and the words in the disclosure ran together, making it possible that consumers might not understand the disclosure. NAD recommended that Drunk Elephant ensure that influencers who receive free products disclose their material connection to the brand.
Health and Beauty Claims
Health and beauty products, especially those making “clinically proven” or safety claims, were also a focal point in 2024. NAD case decisions reinforce the well-established truth-in-advertising principle that claims must be substantiated with appropriate testing and evidence, ensuring products are safe for their intended demographics.Pamprin (NAD Case #7247): Bayer Consumer Health challenged claims made by Focus Consumer Healthcare for Pamprin Botanicals, a dietary supplement for PMS relief, including “clinically tested” and “scientifically tested” assertions. NAD found the supporting study was flawed for a few reasons, including the lack of a control group, and NAD recommended discontinuing these claims. Bayer also challenged claims about the benefits of the product’s ingredients including ashwagandha, magnesium, vitamin B6, turmeric and chaste berry, which NAD found unsupported due to differences in dosage and duration between the studies and the product’s use instructions. NAD recommended that Focus modify the advertising to avoid misleading messages about product superiority and the “naturally good-for-you ingredients” claim. However, NAD did not require changes to the product name or the “tried and trusted” claim.
GuruNanda (NAD Case #7401): GuruNanda challenged Oral Essentials’ claim that its Lumineux mouthwash products are “Certified Non-Toxic,” a claim that appears on the front of the packaging, as well as the related certification from “Made Safe” on the back of the packaging. Non-toxic claims require a high level of support and, as a result, NAD found that the studies submitted were not a good fit for the challenged claim. Among other limitations, the studies addressed only one form of toxicity; contained different ingredients from the marketed product; and there was insufficient information about the criteria for the “Made Safe” certification to support a broad, unqualified “Certified Non-Toxic” claim. Accordingly, NAD recommended that the claims be discontinued.
Product Demonstrations
Several 2024 NAD decisions examined product demonstrations. NAD’s case decisions reinforced the well-settled truth-in-advertising principles that product demonstrations must be relevant to consumers and accurately reflect typical results. Influencers on platforms like Instagram and TikTok should follow these same principles in their demonstrations.Zuru Edge (NAD Case #7346): NAD recommended that Zuru Edge modify or discontinue certain claims for its Rascals and Millie Moon diapers following a challenge by Kimberly-Clark. NAD found, among other things, that the “5 Cups Water” demonstrations that appeared on social media posts and featured influencer moms pouring five cups of water on the diapers were not consumer-relevant because water is not an appropriate proxy for urine, and as a result, the demonstrations exaggerated the absorption capabilities of Zuru’s diapers. NAD recommended, among other things, that the demonstrations be discontinued.
Rankings and Reviews
Another notable trend was the use of rankings and reviews. When a brand’s website displays a #1 or “best” provider ranking, it can be misleading if the ranking appears unbiased but is not. This misleading message often spreads further when the #1 or “best” claim appears in search results or is shared on social media. FTC’s August 2024 adoption of the Final Rule Banning Fake Reviews and Testimonials, which prohibits misrepresenting a website as providing independent reviews when it does not, should alert companies. Presenting reviews and rankings as independent when they are company-controlled could lead to enforcement actions and monetary penalties.Key Takeaways
NAD’s 2024 case decisions emphasized the importance of consumer-relevant product demonstrations, honest rankings and reviews, and clear communication in comparative performance claims to ensure truthful advertising practices. As we head into 2025, it is crucial to remember these key points to maintain transparency and trust in advertising:
- Influencer marketing: It is the responsibility of both advertisers and influencers to ensure that clear and conspicuous material connection disclosures are made.
- Product demonstrations: Must be consumer-relevant and accurately reflect typical consumer experiences.
- Health and beauty claims: The support for health and beauty claims must be a good fit for the advertised claim.
- Rankings and reviews: Must be honest and unbiased, adhering to FTC’s new Review Rule.
NAD’s 2024 case decisions represent what is happening in the market. I have no doubt that many of the issues we saw in 2024 will continue in 2025, but the advertising industry’s creativity means we always see issues that we cannot anticipate.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB and CARU decisions, subscribe to the online archive.
Originally published in SupplySide Supplement Journal