CFBAI_ProgramBackgrounds_4-28-2020

National Advertising Division

The National Advertising Division (NAD) monitors national advertising in all media, enforces high standards of truth and accuracy, and efficiently resolves disputes to build consumer trust and support fair competition. NAD reviews advertising based on challenges from businesses, complaints from consumers, or on its own initiative covering a wide variety of both industries and issues. NAD’s decisions represent the single largest body of advertising decisions in the United States.

Program Impact

NAD was established in 1971 to monitor and evaluate the truth and transparency of national advertising through a combination of independent monitoring and competitor disputes and has become a leading voice in providing guidance on truthful and transparent advertising and standards for substantiating advertising claims. Around 150 cases are handled each year through one of three tracks: Fast-Track SWIFT, Standard Track, and Complex Track. Reports of all case findings can be found in the BBB National Programs Online Archive

 

 

Truth & Transparency

Voluntary self-regulation helps create an honest and fair marketplace. Companies benefit from a level playing field and consumers benefit from a more trustworthy marketplace. A 90% participation rate demonstrates the depth of industry’s commitment to self-regulation and truth and transparency.

Issues We Examine

NAD’s legal team specializes in examining advertising claims for a diverse set of goods and services like telecommunications, infant nutrition, over-the-counter medication, and dietary supplements for a wide variety of issues from product efficacy to influencer marketing and the use of consumer reviews.

Time & Cost

The NAD process resolves advertising disputes efficiently and almost always faster than a court proceeding. There is no document discovery or depositions, no counterclaims, and the process requires less investment in time and cost than litigating a case.

Navigating Uncertainty

NAD has a published body of case precedent and is staffed by decision makers dedicated to resolving advertising disputes, using a process that provides advertisers the right to appeal adverse decisions to the National Advertising Review Board (NARB).

NAD Challenges

 

NAD offers three options for submitting challenges for review: Standard Track, Complex Track, and Fast-Track SWIFT. Click on the options below for more information on each track's process, challenge eligibility requirements, timeline, and fees to determine which track is best suited to handle your needs. BBB National Programs National Partners receive a discount on filing fees. 

 

 

Fast-Track SWIFT

Single-issue digital advertising cases with decisions in 20 business days. Learn More

Standard Track

Open to a variety of case types with decisions in four to six months. Learn More

Complex Track

Cases requiring complex substantiation. Time to decision is determined by the parties. Learn More

 

 

 

Why Use NAD for Advertising Challenges

When a competitor’s advertising harms consumer trust or threatens a company’s reputation and market share, decision makers need to answer three key questions:

  • Which forum will resolve my challenge most efficiently—federal court, Federal Trade Commission complaint, or NAD challenge?

The NAD process promotes truthful advertising resolving advertising disputes efficiently. Unless advertising is so misleading and causing sufficient harm that a temporary restraining order application will likely succeed, the NAD process is typically faster than a court proceeding.

 

 

  • How much will it cost?

 

Filing a challenge with NAD is almost always more cost effective than other options. There is no document discovery. There is no deposition. The matter cannot be delayed by filing counterclaims. Our streamlined process saves time and money.

 

 

  • What are the risks?

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. Our 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.

 

 

 

 

 

NAD’s Monitoring Program

As part of its public interest mission to ensure consumers receive truthful and accurate advertising messages, NAD initiates approximately 20-25% of its cases each year based on its own monitoring of advertising in a wide variety of product categories. The goal of NAD’s monitoring cases is to expand the universe of advertising claims that are reviewed for truth and transparency and provide guidance for future advertising. In determining whether to open a monitoring case, NAD considers whether the advertising meets one or more of the following criteria:

 

  • Targets a vulnerable population (elderly, children, special needs, etc.);
  • Capitalizes on consumer fears or misunderstanding;
  • Fills a gap in regulatory efforts of the FTC and state AGs;
  • Addresses novel or emerging issue of interest for the advertising industry;
  • Concerns claims that consumers cannot evaluate for themselves;
  • Achieves diversity among industries that historically participate in self-regulation.

 

 

 

 

Policies & Procedures


Any company, consumer, or non-governmental organization can file a challenge with NAD. We handle about 150 cases each year and our decisions represent the single largest body of advertising decisions in the United States. The NAD | NARB Policies and Procedures describe the details and parameters of NAD's challenge review process.

News & Blog

Press Release

BBB National Programs Partners with Facebook to Strengthen Truth-in-Advertising Enforcement on the Social Network's U.S. Platform

New York, NY – December 2, 2020 – Taking an important step to advance the effectiveness of its quick and efficient self-regulatory programs, BBB National Programs today announced a new National Advertising Division (NAD) partnership with Facebook. 

Read the Press Release
Decision Press Release

Arcadia Consumer Healthcare Violates National Advertising Division Procedures

New York, NY – November 30, 2020 – The National Advertising Division (NAD) determined that Arcadia Consumer Healthcare 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. 
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Blog

Truth-in-Advertising: Who Makes the Rules?

It is a common misunderstanding that the National Advertising Division (NAD) creates or establishes standards for the U.S. advertising industry. NAD does not make the rules, but instead serves as one arm of the U.S. system of independent advertising self-regulation to hold companies to established standards for claim substantiation. Substantiation standards may be set by laws, guidance documents, or industry organizations. This post outlines how NAD looks to those different sources for guidance when reviewing advertising claims.
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Blog

Call to Action: Improve Green Marketing and Avoid Greenwashing

Green marketing can be a strong marketing tool for companies to differentiate their sustainable approach to business and help consumers choose more sustainable products. But with the variety and volume of green marketing today, does it? Are environmental claims supported so that consumers can make choices that help the planet? While some observers call for more rigorous standards, governmental guidelines regulating environmental marketing already exist. Industry self-regulation also plays an important role in leveling the playing field on green marketing so that consumer purchases align with their environmental goals.
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Decisions

Podcast

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...
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Decision

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...

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Decision

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...

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Podcast

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...

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Upcoming Events

IFSCC's The Skin Virome: Recent Science and Product Claims in the COVID-19 Era

BBB National Programs Speakers: Annie Urgurlayan, Assistant Director, National Advertising Division and Peter Marinello, Vice President and Howard Smith, Attorney, Direct Selling Self-Regulatory Counc ...
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Jun 06, 2021 Virtual

PLI Hot Topics in Advertising Law

BBB National Programs' Speaker: Hal Hodes, Senior Attorney, National Advertising Division
Learn more
Jun 21, 2021 Virtual
 

 

 

Frequently Asked Questions

 

 

 

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