National Advertising Division

The National Advertising Division, often called NAD, was formed in 1971 by the advertising industry in response to calls for government regulation of advertising. NAD’s public interest mission is to seek to ensure that advertising claims are truthful and accurate for consumers and that advertisers operate on a level-playing field. NAD assesses the truth and accuracy of claims made in national advertising via three case track options for competitor challenges (Standard Track, Fast-Track SWIFT, and Complex Track) or through its own monitoring efforts.

No, the National Advertising Division is a unit of the independent, non-profit organization, BBB National Programs. BBB National Programs is not a government entity, nor is it affiliated with a government agency.

The term “national advertising” includes any paid commercial message, in any medium (including product labeling), if it has the purpose of inducing a sale or other commercial transaction or persuading an audience of the value or usefulness of a company, product, or service; if it is disseminated nationally or to a substantial portion of the United States, or is test market advertising prepared for national campaigns, and if the content is controlled by the advertiser. This includes claims made on a company’s website or any website that is promoting a company’s product for sale. 

Participation in the self-regulatory process is voluntary. However, pursuant to the NAD/NARB Procedures, if an advertiser refuses to participate or refuses to comply with NAD’s recommendations, NAD will refer the matter to the appropriate regulatory agency, which is typically the Federal Trade Commission (FTC). A press release will be issued to this effect. NAD referrals receive priority treatment from the FTC so an advertiser can expect a call from an FTC attorney who is assigned to the referral. Advertisers who initially refuse to participate often return to NAD, and those who refused to comply with NAD’s recommendations often end up modifying their advertising. NAD may also report misleading advertising to the platform on which it was found, including Facebook, for review as to whether the challenged claims comply with platform advertising policies.

• A Fast-Track SWIFT (Single Well-defined Issue Fast Track) challenge is limited to a single well-defined issue, which does not require review of complex evidence or argument and will be capable of resolution within 20 business days. SWIFT claims are not limited to digital advertising and can include any single issue in any media.
• Timing: The filing fee must be received by NAD before the 20-day countdown clock will begin on the claim. Learn more about SWIFT challenges.
• A challenge can only be commenced by filing via the online portal. Learn more about what is required for a SWIFT challenge.
• If NAD determines that the challenge is not appropriate for Fast-Track SWIFT, the challenger has the option to refile the challenge in the Standard or Complex track or close the challenge.
• Please see the NAD/NARB Procedures for more information.

 

Standard and Complex Tracks

• Standard and Complex Track challenges are filed using the online portal. Challenges in both tracks are commenced with an opening letter.
• The opening letter should list the claims challenged, explain why the claims are misleading, attach any available evidence that demonstrates the claims are misleading, including testing, studies, research, or surveys, and link to the challenged advertising or provide copies if advertising is not available digitally.
• Standard Track is the default track to which any challenge over which NAD has jurisdiction may be submitted. Learn more about Standard Track.
• Complex Track is designed for challenges that require complex claim substantiation. Learn more about Complex Track.

 

Local vs National Advertising

• NAD Fast-Track SWIFT is an expedited process for resolving simple, single-issue advertising disputes and that does not require review of complex evidence in 20 days. NAD Fast-Track SWIFT was developed in response to industry concerns that the timeline for standard track cases is often too long to adequately address common simple issues with uncomplicated evidence.

• A Standard Track challenge generally involves more than one issue and may involve complicated evidence which requires a lengthier review process. The Complex Track, however, is an enhanced process for challenges that require complex claim substantiation providing businesses and their counsel with a customized experience consisting of flexible and more predictable scheduling, greater transparency into the case review process, and deeper insights into NAD’s perspective on the evidence.

• Complex Track cases involve complex substantiation, such as challenges that may include multiple expert reports or scientific or other technical evidence that requires significant time to analyze, or that involve numerous claims made for a variety of different products.

Yes. All standard challenges made by companies and/or competitors shall be filed together with payment (see below for amount) to BBB National Programs as a filing fee. Information on Fast-Track SWIFT filing fees can be found here, Standard Track filing fees can be found here, and Complex Track filing fees can be found here. Filing fee waivers or partial waivers are available if economic hardship is demonstrated. 

• The filing fee shall be accompanied by a statement indicating the category into which the challenger’s revenues fall. In the case of a challenge filed by a subsidiary, the filing fee is determined by the gross annual revenue of the parent company. 
• If a case is opened but subsequently administratively closed for any reason other than consent of the parties pursuant to Section 2.2(E), 50% of the filing fee will be refunded.  

If the advertiser agrees to comply with any recommended changes to their advertising, the case is closed. If the advertiser does not agree to comply, it is referred to the FTC and other appropriate regulatory agencies. NAD may also report misleading advertising to the platform on which it was found, including Facebook, for review as to whether the challenged claims comply with platform advertising policies.

If the advertiser appeals or a challenger’s request to appeal is granted, the case will be reviewed by the National Advertising Review Board (NARB).