CFBAI_ProgramBackgrounds_4-28-2020

NAD’s Challenge Process

Any company or non-governmental organization, including trade associations and non-profit organizations, can file a National Advertising Division (NAD) challenge against the truth or accuracy of national advertising in any advertising medium. With the exception of the Fast-Track SWIFT Disclosure track, all NAD challenges are initiated with an opening letter explaining why the challenged claims are misleading, accompanied by supporting exhibits/evidence.

Filing Tracks at a Glance

 

SWIFT Standard

Fast-Track SWIFT

Eligibility

Single, well-defined issue

Challenge Letter

≤ 5 pages

Evidence

≤ 5 exhibits

Briefings

1 Round

Party Meetings

1 Round

Time to Decision (Business Days)

20

Filing Fees

Based on annual revenue

National Partners

$12,000-$40,000

Non-National Partners:

$15,000-$50,000

 

SWIFT Disclosure

Fast-Track SWIFT

Eligibility

Sufficiency of disclosures

Challenge Letter

Optional

Evidence

Optional

Briefings

1 Round

Party Meetings

1 Round

Time to Decision (Business Days)

20

Filing Fees

$10,000

 

Standard Track

 

Eligibility

Multiple issues: single product/line

Challenge Letter

≤ 20 pages

Evidence

Unlimited

Briefings

2 Rounds

Party Meetings

1 Round

Time to Decision (Business Days)

Final Meeting + 20

Filing Fees

Based on annual revenue

National Partners

$8,000-$36,000

Non-National Partners:

$10,000-$45,000

 

Complex Track

 

Eligibility

Multiple issues; complex substantiation

Challenge Letter

≤ 30 pages

Evidence

Unlimited

Briefings

2 Rounds +

Party Meetings

2 Rounds

Time to Decision (Business Days)

Final Meeting + 30

Filing Fees

Based on annual revenue

National Partners

$24,000-$60,000

Non-National Partners:

$30,000-$75,000

 
 

 

 

 

Step 1: Select a Track

NAD offers several options for submitting challenges for review, tailored to the nature of the advertising claims at issue and the complexity of the evidence: Fast-Track SWIFT, Standard Track, and Complex Track. All final NAD decisions are eligible for appeal to the National Advertising Review Board

 

Expand each option to learn more about the track process, eligibility, and overall timeline.

 

 

 

Step 2: Prepare to Initiate your Case

All challenges must be submitted via the NAD Challenge Portal.

 

 With other questions, review the NAD Process FAQs or the NAD/NARB Procedures

 

 

 

 

Filing Fees

Filing fees cover some of the administrative costs associated with the advertising review process. Fees are based on annual revenue per the breakdown below. 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. Filing fee waivers or partial waivers are available if economic hardship is demonstrated. BBB National Programs National Partners receive a discount on filing fees.

 

 

 

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. 

 

 

Read the Monitoring Program FAQs

 

 

 

Frequently Asked Questions

We have rounded up the most asked questions we receive at the National Advertising Division. Want to submit a question to be added? Let us know at nad@bbbnp.org.

 

Jump to:

The Overview

The Process

Meetings, Decisions, Announcements

NAD’s Monitoring Program

Fast-Track SWIFT 

 

 

 

 

Recent Decisions

Decision

Following National Advertising Division Inquiry, Google Voluntarily Unlists Video Demonstrating Google Gemini Capabilities

New York, NY – September 12, 2024 – Google voluntarily unlisted a video demonstrating the capabilities of Google Gemini, its large language model artificial intelligence (AI) offering introduced in December 2023.

Read the Decision Summary
Decision

National Advertising Division Recommends Gruma Modify Sugar and Net Carbohydrate Label Claims

New York, NY – September 11, 2024 – In a challenge brought by competitor Olé, the National Advertising Division found certain “zero sugar” and “0G sugar” claims supported and recommended that Gruma Corporation, in connection with its tortilla product offerings, modify or discontinue other claims. 

Read the Decision Summary
Decision

Direct Selling Self-Regulatory Council Recommends MONAT Discontinue Earnings Claims

McLean, VA – September 5, 2024 – The Direct Selling Self-Regulatory Council (DSSRC) recommended MONAT Global discontinue certain earnings claims made on the MONAT website and by salesforce members on Facebook, Twitter/X, Instagram, and YouTube. 

Read the Decision Summary
Decision

National Advertising Division Refers HiSmile Teeth Whitening Product Claims to the Federal Trade Commission

New York, NY – August 29, 2024 – The National Advertising Division referred HiSmile to the Federal Trade Commission (FTC) and other regulatory authorities for review after HiSmile declined to provide an advertiser statement confirming it will comply with all of NAD’s recommendations.
Read the Decision Summary

 

BBB National Programs provides summaries of all case decisions in the Case Decision Summary library. For the full text of decisions, subscribe to the Online Archive. For members of the press, the full text of any BBB National Programs decision is available by emailing the request to press@bbbnp.org

 

 

 

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