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.

 

 

 

 

 

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

NAD Finds Television Commercial for KIND Bars Not Falsely Disparaging; Recommends Other Modifications

For Immediate Release 
Contact: Abby Hills, Director of Communications, BBB National Programs 
703.247.9330 / press@bbbnp.org  

New York, NY – September 23, 2020 – The National Advertising Division (NAD) of BBB National Programs determined that Kind, LLC (KIND) provided a reasonable basis for the depiction of the two products in the challenged television commercial for KIND Snack Bars and that the depiction was not falsely denigrating. However, NAD recommended that the advertiser modify the commercial to: 

  • Expressly identify the specific variety of KIND and Clif bars that form the basis of its “75% less sugar than the leading Clif bar” claim; and 
  • Clearly and conspicuously disclose the weight difference between the serving sizes of the compared products. 


The claims at issue were challenged by Clif Bar & Company (Clif), maker of Clif Snack Bars.  

NAD noted that the express claim “75% less sugar than the leading Clif bar” was not in dispute because the challenged commercial depicted a comparison between Clif’s bestselling Clif Chocolate Chip bar (20 grams of sugar) and KIND Dark Chocolate Nuts & Sea Salt Bar (5 grams of sugar). However, NAD considered whether there was a lack of clarity such that consumers could take away an overly broad and misleading claim (i.e., that the “75% less sugar” claim applies to the entire KIND and Clif bar lines).  

After carefully reviewing the elements of the commercial, NAD determined that it did communicate an unsupported implied claim for all the products in the KIND and Clif bar lines. Therefore, NAD recommended that the advertiser modify the commercial by expressly identifying the specific variety of KIND and Clif bars that form the basis of its “75% less sugar than the leading Clif bar” claim. 

Further, NAD determined that the advertiser’s use of serving size as the basis for comparing sugar content of the bars was not misleading. However, NAD concluded that it would be reasonable for a consumer viewing the challenged commercial to believe that the two bars were of similar weights, a material difference given that the KIND bar weighs 40 grams, while the Clif bar weighs 68 grams. Therefore, NAD recommended that the advertiser further modify the commercial to clearly and conspicuously disclose the weight difference between the serving sizes of the compared products. 

Finally, NAD determined that the advertiser provided a reasonable basis for the depiction of the two products in the challenged commercial and that the depiction was not falsely denigrating. NAD concluded that nothing in the commercial conveys that the depicted ingredients (brown rice syrup for the Clif bar and almonds for the KIND bar) are the only ingredients in the products, merely the first ingredients when listed in order of predominance by weight. Further, NAD noted that the advertiser took reasonable steps to ensure the brown rice syrup depicted in the commercial accurately reflected the quantity and composition of the ingredient found in the depicted Clif bar. In addition, unlike other cases in which NAD found an advertiser’s portrayal of ingredients in a competitor’s product problematic, the advertisement does not use negatively charged terms or obscure chemical names to imply that brown rice syrup is harmful or unsafe.  

In its advertiser’s statement, Kind stated that it agrees to comply with NAD’s recommendations. Kind further stated that it “is grateful that NAD has upheld the heart of Kind’s commercial . . .  . Kind will take NAD’s recommendations into account in future advertising to more clearly identify the specific products that are the basis of comparison and to more clearly identify the weight differences between single-serving products if they are materially different.” 

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About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org. 

About the National Advertising Division: The National Advertising Division (NAD), a division of BBB National Programs, provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.    

Blog

All About SWIFT: Resolving Straightforward Ad Disputes in a Matter of Weeks

On May 13, Laura Brett, VP of our National Advertising Division (NAD) joined Loeb & Loeb’s David Mallen to discuss the new Fast-Track SWIFT process. The SWIFT process has been officially launched and the NAD team has begun processing claims.
Read more
 

 

 

Upcoming Events

CARU Conference: Virtual Series

Why Diversity and Inclusion is Good for Business: This presentation will cover why a workplace culture that supports diversity is the key to garnering unique ideas that just may be the next big thing. ...
Learn more
Nov 17, 2020 Virtual

Kidvertising 101

Kidvertising 101 is a two-day seminar that provides advertisers, marketers, and legal counsel with an interactive masterclass on ‘kidvertising’ that includes actionable guidance to help you or your cl ...
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Nov 18, 2020 Virtual
 

 

 

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