“What’s in a name?” Well, according to the National Advertising Division of the Council of Better Business Bureaus, truth should be a definite component. In its decision involving a challenge brought by Unilever United States, Inc...
The FTC has filed a complaint in the Northern District of California alleging that D-Link Corporation, a Taiwan-based manufacturer, failed to take adequate steps to protect its routers and Internet cameras from readily preventable security flaws, and yet touted the security of its routers in the company’s promotional materials...
As you may have read by now, the makers of the Lumosity “brain training” program – Lumos Labs, Inc., and its founders, Kunal Sarkar and Michael Scanlon – have agreed to pay $2 million in redress (an amount suspended from $50 million, due to the company’s poor financial condition), and will be required to provide its subscribers...
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...
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 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...
It’s always nice to highlight a case where the marketer is doing things right. In one such matter, the Electronic Retailing Self-Regulation Program (ERSP) determined that Guthy-Renker, LLC had adequate substantiation in support of claims for its product, Cold Plasma Sub-D, a topical cream intended to sculpt and tighten the appearance of skin along the chin and...
On December 15, 2016 DeVry University and its parent company agreed to a $100 million settlement of a FTC lawsuit alleging DeVry misled prospective students with ads that touted high employment success rates and income levels upon graduation. Ads claimed that 90% of graduates landed jobs in their field within six months of...