NARB ProgramBackgrounds

National Advertising Review Board

The National Advertising Review Board (NARB) is the appellate body for the U.S. system of advertising industry self-regulation. Five-member NARB panels hear cases appealing an NAD or CARU decision and provide independent industry peer review, ensuring truthfulness and accuracy in national advertising and helping promote voluntary compliance of its decisions—a key pillar of industry self-regulation.

Program Impact

NARB, established in 1971 as a fair and impartial appellate body, reviews appealed NAD or CARU decisions. Nominated by various leading organizations in the advertising industry, NARB members are selected for their stature and experience in their fields. 

 

 

Truth & Transparency

When a competitor’s advertising harms consumer trust or threatens a company’s reputation and market share, the advertising self-regulatory system creates a level-playing field for business and helps ensure consumers receive truthful and accurate advertising.

Compliance

After a decision, NARB or the challenger can check in on whether the advertiser has made appropriate modifications to its advertising and has 10 days to respond. The case is closed if there is a good faith effort to bring their advertising into compliance.

Non-Compliance

In cases of lack of good faith efforts to modify or discontinue advertising as a result of a NARB decision, NARB will refer the case to an appropriate government agency, usually the Federal Trade Commission (FTC).
 

For the last 50 years in the advertising industry, companies have held each other to a higher standard. In response to the pressures and criticisms of consumerism that had mounted during the previous decade, in 1971 the advertising industry established the National Advertising Division (NAD) and National Advertising Review Board (NARB), the U.S. mechanism of independent self-regulation that has stood the test of time and technological innovation.

 

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Guidelines & Procedures


Any advertiser or challenger has the right to appeal NAD’s decision to NARB. An advertiser has an automatic right of appeal. A challenger must request permission to appeal from the NARB chair and explain why it believes there is a substantial likelihood NARB would come to a different conclusion on a case than NAD. 

 

News & Blog

Press Release

BBB National Programs Announces 85 Distinguished Panel Pool Members for National Advertising Review Board and New Vice Chair

McLean, VA – January 11, 2022 – BBB National Programs today announced the 85 panel pool members of the 2022 National Advertising Review Board, as well as its 2022 vice chair, Heather Hippsley, who retired in 2020 as Deputy General Counsel of the Federal Trade Commission (FTC) where, among many senior roles over...

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Press Release

BBB National Programs Board of Directors Welcomes IAB CEO David Cohen and Re-Elects Three Members, Including P&G’s Ken Patel as Chair

McLean, VA – December 20, 2021 – The Board of Directors of BBB National Programs, an independent non-profit organization that operates more than a dozen independent industry self-regulation, accountability, and dispute resolution programs, today announced that it has welcomed a new member and re-elected...

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Defining The 'S' In ESG And Navigating Disclosures

Jul 6, 2022, 09:00 AM by Eric D. Reicin, President & CEO, BBB National Programs
For businesses interested in making robust ESG disclosures, not only can the sheer number of frameworks and standards make ESG performance reporting seem overwhelming, the frameworks themselves can be a bit fuzzy on how they define and measure the "S" of ESG.

Last year, I wrote about the need for a widespread commitment to accountability in the business community for ESG (environmental, social, and governance) best practices, not just to investors, but also to consumers.

In 2022, demand continues to grow among consumers for companies to demonstrate measurable ESG best practices. According to a recent PWC survey, 83% of consumers think companies should be actively shaping ESG best practices, and 91% of business leaders feel their company has a responsibility to act on these issues.

Though the demand is clear, ESG performance reporting—to investors and consumers—remains confusing and inconsistent. According to a recent survey by GaiaLens, investors signaled that ESG indices that do exist are not focused on the areas of ESG that investors are most interested in, and that “nearly one in five [investors] made it clear that a more evenly balanced indexing of all ESG factors was needed; declaring 'there is a lack of variety, i.e., too many focus just on climate change' today.”

For businesses looking to get ESG right, what standards and principles should they look to? How can businesses make sense of the somewhat murky standards for the “social” or “S” portion of ESG?

 

Current Landscape

  • Global Reporting Initiative (GRI): The comprehensive and widely used GRI standards help businesses quantify and report on their impacts on the economy, environment, and society. Companies do not have to report on all topics covered; a more popular option is to identify topics that may substantially impact how stakeholders assess and make decisions about the business. Many multinational companies, such as Hilton, incorporate this reporting standard into their ESG strategy and reporting.
  • Sustainability Accounting Standards Board (SASB): SASB publishes standards for 77 industries. Blackrock recommends that corporations look to frameworks such as those identified by SASB in disclosures as part of their responsible business practices.
  • World Economic Forum International Business Council Stakeholder Capitalism Metrics and Disclosures: These are largely drawn from existing standards, such as the GRI and SASB, among others.
  • In addition, several investors have developed scorecards/rankings on diversity, pay, and other employment-related standards such as Arjuna Capital’s racial and gender pay scorecard.

 

Regulatory Developments

For some, a logical inference to draw on the “S” in ESG is an emphasis on diversity and compensation matters. In 2020, the U.S. Securities and Exchange Commission (SEC) adopted amendments to Regulation S-K that began requiring public companies to reveal more information on their “human capital resources,” however, this amendment to the rule has been criticized, even among SEC Commissioners, for its omission of diversity.

The SEC recently proposed rules on climate-related disclosures (the "E" in ESG), and I expect new proposed rules around human capital disclosures later in 2022 or early 2023. SEC Chair Gary Gensler said, "Investors have said that they want to better understand one of the most critical assets of a company: its people. To that end, I’ve asked staff to propose recommendations for the Commission’s consideration on human capital disclosure," adding that this could include metrics like "workforce turnover, skills and development training, compensation, benefits, workforce demographics including diversity, and health and safety."

 

Challenges With The Current Landscape

So, for businesses interested in making robust ESG disclosures, not only can the sheer number of frameworks and standards make ESG performance reporting seem overwhelming, the frameworks themselves can be a bit fuzzy on how they define and measure the "S" of ESG. PWC found that a lack of reporting standards and the complexity of regulations is one of the top barriers to ESG progress, with 37% of business leaders citing this.

 

Navigating The 'S' In ESG Disclosures

We know that ESG disclosures matter to all stakeholders: companies, investors, consumers, employees, and regulators. We also know that the SEC is active in ESG disclosure issues, though we do not yet know what expected enhanced human capital SEC disclosures might look like.

Before regulation around ESG performance reporting is finalized, companies would be wise to get their ESG house in order.

Be proactive: Position yourself for success by assessing any ESG reporting you are doing, and identify what standards you are using to demonstrate success. If you are just beginning to think about the "S" in ESG disclosures or improving them, consider whether you should begin with voluntary disclosures of certain demographics, similar to more than half the Russell 1000.

Be consistent across all messaging: Even if you have formal channels for ESG disclosures, be careful about other disclosures made by the organization through different channels (e.g., through DEI, recruiting, brochures, talent management, best places to work surveys, EEO-1, etc.).

Consider starting a U.S.-focused conversation: In addition to the complexity of the current landscape, many of the current standards and frameworks are internationally focused. Discuss with other U.S. companies in your industry the gaps, opportunities, and challenges you face in ESG reporting.

Focus on continual improvement: If you are leading an organization that has a robust ESG program, consider how to continually improve ESG disclosures as the data and rating providers and standards are evolving. Consider all stakeholders, not just the investors.

It has always been my experience in business that where some companies see only problems, others are able to seize opportunities. Now, before the SEC finalizes new rules around ESG disclosures, there is an opportunity for industry to lead the way. You can help map out the principles and standards businesses are currently using, identify where those seem confusing in scope, and collaborate with industry peers on a more robust solution. In doing so, you can begin to fulfill the principles and standards of ESG and, in the process, start to help shape a better definition of the “S” in ESG.

Originally published in Forbes.

 

 

 

Decisions

Decision

National Advertising Review Board Recommends Merck Animal Health Discontinue “Best in Show” Commercial for Bravecto Flea and Tick Preventative for Dogs

New York, NY – May 05, 2022 – A panel of the National Advertising Review Board (NARB) has recommended that Merck Animal Health discontinue its “Best in Show” commercial for Bravecto brand flea and tick preventative based on the NARB panel’s finding that the 30-second commercial...

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Decision

National Advertising Review Board Finds Goli Nutrition’s “Apple Cider Vinegar” Gummies Product Name Supported and Not Misleading

New York, NY – April 27, 2022 – A panel of the National Advertising Review Board (NARB), the appellate advertising law body of BBB National Programs, has determined that Goli Nutrition, Inc. supported its express use of the term “Apple Cider Vinegar” in the product name of its Apple Cider Vinegar (ACV)...

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Decision

NAD Finds Verizon 5G Ultra Wideband Expansion Claim Supported; Recommends 5G Ultra Wideband “Most Reliable” Claim be Discontinued

New York, NY – August 11, 2022 – The National Advertising Division (NAD) determined Verizon provided a reasonable basis for the message in its “Verizon is Going Ultra” commercial that Verizon 5G Ultra Wideband has expanded its coverage. However, NAD recommended that Verizon discontinue the “most reliable”...

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Decision

National Advertising Division Recommends SmileDirectClub Discontinue Comparative “2X Whiter” and “2X Faster” Whitening Strips Claims

New York, NY – August 4, 2022 – The National Advertising Division (NAD) recommended that SmileDirectClub discontinue claims that its Fast-Dissolving Whitening Strips get teeth “2X whiter than Crest Classic White Whitestrips” and whiten teeth “2X faster than Crest Classic White Whitestrips.” 

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BBB National Programs provides summaries of all case decisions in the Case Decision Summary library. For the full text of National Advertising Division, National Advertising Review Board, and Children’s Advertising Review Unit 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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