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).
 

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.

 

Visit NAD50th.org

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 National Advertising Division Launches Expedited Fast-Track SWIFT Lane Designed to Address Misleading Advertising Disclosures

New York, NY – November 9, 2021 – Mindful of recent Federal Trade Commission (FTC) actions, BBB National Programs today announced a new, streamlined lane of the expedited Fast-Track SWIFT challenge submission process, one designed specifically to address the prominence and sufficiency of...

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Press Release

Media Advisory: FTC Commissioner Rebecca Slaughter to Keynote National Advertising Division “Future of Ad Law” 2021 Annual Conference

New York, NY – September 21, 2021 – In its 50th anniversary year, the National Advertising Division (NAD) of BBB National Programs will host the NAD 2021 Annual Conference virtually next week, running Wednesday, September 29 through Friday, October 1. Members of the media are invited to cover NAD 2021 with...

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Blog

The Potential Cost of Misleading Income Claims

The FTC recently put direct sellers, and other companies offering money-making opportunities, on notice: false promises about earnings potential and other aspects of a company’s business opportunity could subject the company to civil penalties. DSSRC published the Guidance on Earnings Claim for the Direct Selling Industry to reinforce fundamental tenets regarding the dissemination of earnings claims by direct selling companies and their independent salesforce members.
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Blog

Misleading Endorsements and Testimonials May Lead to Civil Penalties

The FTC recently sent a Notice of Penalty Offenses Concerning Deceptive or Unfair Conduct around Endorsements and Testimonials, informing 700 companies that the misleading use of endorsements could lead to civil penalties. This action demonstrated the FTC’s continued interest in challenging the deceptive or misleading use of endorsements or testimonials, making it the perfect time to review how to avoid some common pitfalls when using them in advertising.
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Decisions

Decision

National Advertising Division Finds Certain Bausch + Lomb Claims for INFUSE Contact Lenses Supported; Advertiser Appeals Other Findings

New York, NY – December 1, 2021 – The National Advertising Division (NAD) determined that Bausch Health provided a reasonable basis for certain INFUSE silicone hydrogel (SiHy) daily contact lens and lens property claims. 

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Decision

National Advertising Division Recommends Byte Disclose Incentivized Reviews for Aligner Products

New York, NY – November 30, 2021 – The National Advertising Division (NAD) of BBB National Programs recommended that Straight Smile, LLC (Byte) take reasonable measures to provide clear and conspicuous disclosures informing consumers that the review was incentivized for each incentivized review on its website and on BestCompany.com, and...

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Decision

T-Mobile Appeals National Advertising Division Recommendation to Discontinue “America’s . . . Most Reliable 5G Network” and Other Claims

New York, NY – November 23, 2021 – The National Advertising Division (NAD) recommended that T-Mobile discontinue certain advertising claims for T-Mobile’s 5G network. T-Mobile will appeal NAD’s decision. The claims, which appeared in television, radio, and internet advertising, were challenged by...

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Decision

T-Mobile Appeals National Advertising Division Recommendation to Discontinue Claims that T-Mobile Has the Most Reliable 5G Network According to umlaut

New York, NY – November 23, 2021 – The National Advertising Division (NAD) recommended that T-Mobile discontinue all claims that it has the most reliable 5G network according to the third-party testing company, umlaut. T-Mobile will appeal NAD’s decision. The express and implied claims,...

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Frequently Asked Questions

 

 

 

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