{"id":944,"date":"2010-12-17T18:57:02","date_gmt":"2010-12-17T18:57:02","guid":{"rendered":"https:\/\/www.rimonlaw.com\/?p=944"},"modified":"2021-07-08T19:03:58","modified_gmt":"2021-07-08T19:03:58","slug":"bbb-offers-mechanism-to-prevent-deceptive-ads","status":"publish","type":"post","link":"https:\/\/www.rimonlaw.com\/bbb-offers-mechanism-to-prevent-deceptive-ads\/","title":{"rendered":"BBB Offers Mechanism to Prevent Deceptive Ads"},"content":{"rendered":"

As we await the release of the FTC Green Guides, advertisers also should be aware of the BBB\u2019S\u00a0National Advertising Division<\/a>\u00a0(\u201cNAD\u201d) as a potential means for dispute resolution for false advertising claims.<\/p>\n

The\u00a0Better Business Bureau\u2019s<\/a>\u00a0NAD offers a self-regulatory mechanism for remedying false advertising claims made in nationally distributed advertisements.\u00a0<\/strong>The system is designed to provide a streamlined and cost-effective alternative to\u00a0false advertising<\/a>\u00a0litigation.\u00a0 Over 4,000 cases have been resolved through this self-regulatory process.\u00a0 Additionally, the process is relatively confidential, as only the challenger\u2019s and advertiser\u2019s positions, NAD\u2019s decision, and a statement by the advertiser are made public, all other evidence remains confidential.<\/p>\n

NAD\u2019s review policies are established & maintained by the National Advertising Review Counsel (\u201cNARC\u201d).\u00a0 NARC\u2019s Mission is \u201d to foster truth and accuracy in national advertising through voluntary self-regulation.\u201d NARC focuses on\u00a0three goals<\/a>\u00a0(1) minimize governmental involvement in private\u00a0 advertising; (2) maintain a level playing field for settling disputes between advertisers; and (3) foster brand loyalty by increasing public trust in advertising.<\/p>\n

Advertising cases from the past 3 months are available for free on the the homepages of the\u00a0NAD<\/a>\u00a0and\u00a0NARC<\/a>\u00a0websites, while a quarterly subscription to the NARC database costs $1,950 and an annual subscription costs $6,900.\u00a0\u00a0\u00a0 THE NARC database contains NAD cases, as well as\u00a0 those from\u00a0CARU<\/a>\u00a0(Children\u2019s Advertising Review Unit) and\u00a0ERSP<\/a>\u00a0(Electronic Retailing Self-Regulation Program).<\/p>\n

While a false advertising case in federal court easily can cost hundreds of thousands of dollars,\u00a0 NAD cases tend to cost a seveal thousand dollars.\u00a0\u00a0 Businesses that belong to the Council of Better Business Bureau (\u201cCBBB\u201d) pay a $3,500 filing fee.\u00a0 For non-CBBB members, the filing fees are as follows:<\/p>\n

(a) $6,000, if the challenger\u2019s gross annual revenue is $400 million or less;
\n(b) $10,000, if the challenger\u2019s gross annual revenue is more than $400 million and less than $1 billion;
\n(c) $20,000, if the challenger\u2019s gross annual revenue is $1 billion or more.<\/p>\n

While NAD cannot award damages, it can order the advertiser to revise or remove its any ads in which false claims are made.\u00a0 For example, on December 8, 2010 NAD issued a\u00a0ruling<\/a>\u00a0that found that Solowave could substantiate its claims that its playsets are made from cedar, while recommending modifications to modify its claims about the nature and type of lumber used in its products.\u00a0\u00a0 On December 8, 2010 NAD also\u00a0ruled<\/a>that FloraFloracould in fact substantiate its claims of \u201cfree delivery,\u201d which were challenged by FTD.\u00a0 Lastly, on November 8,\u00a0 NAD\u00a0referred<\/a>\u00a0a case to the FTC involving FTD\u2019s claim that Provide Commerce, Inc. (operating as ProFlowers) discontinue or modify a graph showing results of customer s satisfaction between FTD\u2019s offering and that of ProFlowers.\u00a0 Because Provide Commerce did not comply with NAD\u2019s initial ruling on the issue,\u00a0 NAD referred the case to the FTC for further review.\u00a0 Thus, although compliance with NAD rulings is voluntary, it can take steps to make sure such compliance is met.<\/p>\n

Brand Geek Takeaway<\/strong>:\u00a0 When your goal is to prevent the continuation of false advertising claims, you should consider NAD for quick and cost-effective resolution of your disputes.<\/p>\n","protected":false},"excerpt":{"rendered":"

As we await the release of the FTC Green Guides, advertisers also should be aware of the BBB\u2019S\u00a0National Advertising Division\u00a0(\u201cNAD\u201d) as a potential means for dispute resolution for false advertising claims. The\u00a0Better Business Bureau\u2019s\u00a0NAD offers a self-regulatory mechanism for remedying false advertising claims made in nationally distributed advertisements.\u00a0The system is designed to provide a streamlined…<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[8],"tags":[148,175,176,179,181,182,180,149,141,178,177],"ppma_author":[2085],"acf":[],"yoast_head":"\nBBB Offers Mechanism to Prevent Deceptive Ads - Rimon Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rimonlaw.com\/bbb-offers-mechanism-to-prevent-deceptive-ads\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BBB Offers Mechanism to Prevent Deceptive Ads - Rimon Law\" \/>\n<meta property=\"og:description\" content=\"As we await the release of the FTC Green Guides, advertisers also should be aware of the BBB\u2019S\u00a0National Advertising Division\u00a0(\u201cNAD\u201d) as a potential means for dispute resolution for false advertising claims. 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