The Practical Advantages of the NAD Process
- Time to decision: The NAD process promotes truthful advertising resolving advertising disputes efficiently. Unless advertising is so misleading and causing sufficient harm that a temporary restraining order (TRO) application will likely succeed, the NAD process is almost always faster than a court proceeding.
- Procedural costs: The NAD process will always be less burdensome. There is no document discovery or depositions. The matter cannot be delayed by filing counterclaims and requires less investment in costs and time than litigating a case. National partners pay a discounted filing fee.
- Navigating uncertainty: Because NAD has a published body of case precedent and is staffed by decision makers dedicated to resolving advertising disputes, the outcome is more predictable than a court proceeding where individual judges have crowded dockets of a wide array of cases and different decision-making styles. All NAD decisions are available in the searchable Online Archive. National partners can purchase an archive subscription at a discounted price. The procedures provide advertisers with an automatic right to appeal adverse decisions to the self-regulatory system’s peer review body, the National Advertising Review Board. NARB is comprised of 70 members from across the advertising industry. Appeals are heard by five-member panels.
How to File a Challenge Before NAD
The initial submission is limited to 20 pages, double spaced (excluding exhibits). Challenges are commenced with an opening letter. The opening letter should:
- List the claims challenged
- Explain why the claims are misleading
- Attach any available evidence that demonstrates the claims are misleading including testing, studies, research or surveys
- Link to the challenged advertising or provide copies if advertising not available digitally
Filing fees cover some of the administrative costs associated with the advertising review process. Filing fee waivers or partial waivers are still available if economic hardship is demonstrated. Challenges made by companies and/or competitors shall be filed together with a filing fee.
Current NAD Standard Track Filing Fees
- Under $250M: $10,000
- National Partner: $25,000
- Under $5B: $30,000
- Over $5B: $35,000
The filing fees should be accompanied by a statement indicating the category into which the challenger’s gross annual revenue falls. In the case of a subsidiary, the filing fee is determined by the gross annual revenue of the parent company.