According to Tuft & Needle in a recent challenge filed with the National Advertising Division (“NAD”), administered by the Council of Better Business Bureaus, at least two important items are misrepresented: (i) there is no savings of $125.00 because the mattresses are always available for purchase at the lower price point, and (ii) the pillows cannot lawfully be advertised as...
One of the Federal Trade Commission’s core missions is investigating and taking action against false and deceptive advertising claims. For any advertiser or marketer, being on the receiving end of an enforcement action is a serious, possibly long-term endeavor. In late December 2015, the FTC released its Enforcement Policy Statement on Deceptively Formatted Advertisements. Clearly, the statement’s name...
StubHub’s price disclosure practices have come under scrutiny by the National Advertising Division (“NAD”) of the Council of Better Business Bureaus, and NAD’s decision last month critical of these practices has implications for all online marketers of consumer goods and services. At issue in the StubHub inquiry was the manner in which StubHub discloses its services fees...
The NAD found that Great Health Works, LLC had a reasonable basis to make several establishment and performance claims regarding the efficacy of the Omega-XL supplement in reducing joint inflammation and pain. In reaching its decision, the NAD noted that eight clinical studies have been conducted on the Omega-XL preparation...
From the ad agency “war room” to the advertiser’s boardroom, the driving force behind almost every advertising campaign is a set of product claims approved for inclusion in the creative executions. These claims may be boldly asserted or subtly suggested. They may be highlighted in clearly informative copy, or softly delivered in sentimental music from...
In the end of March 2017, advertiser Magners Irish Cider accused Miller Lite and its advertising agency of using Magner’s HOLD TRUE tagline in a Miller Lite campaign. Magners went public and Tweeted “@MillerLite Imitation is the sincerest form of flattery they say...#HoldTrue.” While Magners was clearly having fun at Miller Lite’s...
In reviewing advertising copy and claims relating to a product’s performance, all products are not created equal. While some products may be advertised with little concern for regulatory scrutiny, others fall within categories that are clearly “high risk.” We’ve long known that dietary supplements, weight loss programs, skin care...
In a wake-up call to advertising agencies, the Federal Trade Commission and ad agency Marketing Architects, Inc. have entered into a settlement requiring the ad agency to pay $2 million to the FTC and the State of Maine Attorney General’s Office for its role in creating allegedly false and deceptive radio ads for weight-loss products on behalf of its client...
“How can I ignite the fire in my heart when you’ve got your foot in my face?” This quote from an episode of The Three Stooges probably explains best the angst of parties on all sides of the right of publicity debate when it comes to untangling court decisions and their interpretation of this state-based right. Last month’s decision by...
If there has been any doubt among marketers and their legal counsel regarding the landscape for so-called negative option and continuity marketing programs in the coming year, recent developments in regulatory enforcement evidence a trend toward enhanced scrutiny and oversight of these programs. Just last week, AdoreMe, Inc. agreed to a settlement...