Category Archives: Ad Watchers

Welcome to The Ad Watchers! Join National Advertising Division attorneys on this podcast as they explore advertising claims and what it means to put them to the truthfulness test.

A Chat with ICAS: What Are Ad Law’s Global Hot Topics?

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In the final episode of the season, Ad Watchers hosts Annie Ugurlayan and Eric Unis go global. They are joined by Sibylle Stanciu-Loeckx, the executive director of the International Council for Advertising Self-Regulation, to discuss the international landscape of advertising self-regulation, including global hot topics, how countries find consensus on critical advertising issues, and the launch of a new Global Think Tank established to explore advertising’s next frontier.

Annie, Eric, and Sibylle discuss the importance of advertising self-regulation on a global scale. They cover the diverse approaches to advertising standards across different countries, the current challenges faced by self-regulatory organizations, and the launch of a new Global Think Tank aimed at fostering collaboration and developing better advertising guidelines. This episode emphasizes the need for ethical advertising practices and examines the role of AI in shaping the future of advertising self-regulation.

Key Takeaways:

  • Cultural differences shape advertising self-regulation systems.
  • AI presents both opportunities and challenges in advertising.
  • Collaboration among self-regulatory organizations (SROs) is essential for effective self-regulation.
  • The ICAS Think Tank aims to enhance global advertising standards.
  • Consumer complaints are a significant focus for many SROs.
  • Sustainability and responsible advertising are hot topics globally.
  • US advertising regulations influence global practices.
  • Ethics in advertising is a universal commitment.

Chapters

00:00 Introduction to Advertising Self-Regulation
02:02 Exploring ICAS and its Global Impact
10:10 Diverse Approaches to Advertising Self-Regulation
14:52 Current Challenges in Advertising Self-Regulation
20:06 Building Consensus Among Global SROs
24:51 Future Trends in Advertising Self-Regulation

Relevant Resources:

AI is Everywhere: What about advertising?

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Artificial intelligence (AI) is top-of-mind for most businesses and on the radar of the National Advertising Division (NAD). In this episode of The Ad Watchers, NAD attorneys Eric Unis and Annie Ugurlayan are joined by guest Ken Crutchfield from Wolters Kluwer Legal & Regulatory U.S. to discuss AI’s potential impact on advertising.

Annie, Eric, and Ken chat about how AI is shaking things up in advertising and the law. Their discussion includes a comprehensive overview on the types of AI, how it works, and where advertisers may want to tread lightly. They dive into a recent case where AI was in the spotlight and break down the different kinds of AI out there. Ken brings insights on how AI is changing the legal field, how it can help advertisers get a grip on markets, and why using AI correctly is so crucial. The conversation covers the ups and downs of using AI in ads, what advertisers need to think about, and tips for navigating AI-related challenges.

Key Takeaways

[03:00] Clear disclosures are crucial when using AI in advertising to avoid misleading claims and copyright infringement.
[11:36] Validation of AI-generated content through trusted sources is essential to ensure accuracy and reliability.
[15:07] Regulating AI poses challenges, and laws may vary internationally, requiring careful consideration of legal requirements.
[21:39] Courts are encountering AI-related cases, and the use of AI in legal proceedings is a topic of discussion.
[24:01] The conversation around AI in advertising and the law is ongoing, and further exploration of its implications is necessary.

Clear and Conspicuous Disclosures: Can You Read the Fine Print?

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For this episode of Ad Watchers, our hosts Eric Unis and Annie Ugurlayan, attorneys at the National Advertising Division (NAD), dive into the fine print to discuss disclosures – the what, when, where, and how of ensuring consumers receive the material information they need to make an informed purchasing decision. 

From small fonts to fast talking and distracting music, our hosts revisit this common issue area in advertising law. Listen in for a discussion of what it takes for a disclosure to be considered clear and conspicuous and uncover lessons learned from a series of print and TV advertisements that didn’t quite meet the standard for transparency. 

For more, listen to Season 1’s episode covering the 4 P’s of a proper disclosure: prominence, presentation, placement, and proximity.

Key Takeaways

  • (1:30) Proper execution of disclosures in advertising is crucial to ensure that consumers notice, read, and understand them.
  • (3:26) Disclosures should be clear and conspicuous, using plain English and being in close proximity to the claim or drawing attention to the disclosure. Hyperlinks should be used carefully, ensuring that important information is not hidden behind them and that they are easily noticeable and understandable.
  • (04:23) Consider the specific requirements of different advertising formats, such as TV, radio, and mobile devices, when designing and placing disclosures.
  • (22:06) Disclosures on packaging should be on the same panel as the claim and easily visible to consumers.
  • (24:30) Font size and readability of disclosures should be prioritized, avoiding the need for magnifying glasses.
  • (25:26) Use plain English in disclosures, keeping in mind that they should be easily understood by the average consumer.

The Best Subject In Advertising Law: Is It Puffery?

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For this episode of Ad Watchers, join us for Eric’s favorite ad law topic: puffery, an exaggerated, blustering, or boastful statement or general claim that could only be understood to be an expression of opinion, not a statement of fact. But where is the line between puffery and a claim that needs a reasonable basis?

Our hosts once again revisit a fan favorite and discuss the most recent puffery cases seen before the National Advertising Division, breaking down the various facets of puffery, including the use of emojis, to answer the burning question – does it require substantiation?

Eric and Annie discuss the concept of puffery in advertising law, exploring its definition, application, and recent cases. The conversation delves into the nuances of puffery, its context-specific nature, and the challenges of distinguishing puffery from objective claims. It also addresses the use of symbols, emojis, humor, and pride in advertising, providing valuable tips for navigating puffery in advertising claims.

Key Takeaways:

  • (2:00) Puffery in advertising law is a nuanced and context-specific concept that requires a deep understanding of consumer expectations and the distinction between subjective and objective claims. Advertisers must assess how their target audience perceives various claims and differentiate between what is considered a mere opinion and a factual statement.
  • (8:21) The use of symbols, emojis, humor, and pride in advertising can impact the interpretation of puffery claims. It may lead to challenges in distinguishing puffery from objective claims since symbols and emojis can add ambiguity, humor can blur the lines between exaggeration and deception, and pride-based claims can appear subjective but sometimes imply objective standards.
  • (9:40) When navigating puffery in advertising claims, it is important to fully brief the issues, keep claims general, and tread carefully with humor to avoid denigrating messages. Ensure all team members are aware of the legal nuances, use generalized statements to reduce the likelihood of factual interpretations, and employ humor cautiously to prevent misinterpretation or offense.
  • (12:57) Understanding recent puffery cases and their outcomes provides valuable insights into the application of puffery in advertising law and the challenges faced by advertisers in defending their claims. Analyzing court decisions helps predict how similar claims might be judged, illustrates the evolving standards and expectations in advertising law, and aids in crafting defensible advertising strategies.

More episodes on puffery:

It’s Not Puffery. Do You Have The Evidence To Be #1?

Best Podcast Episode Ever: What is Puffery?

Revisiting Consumer Reviews: Incentivized, Inflated, or Authentic?

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In this episode of Ad Watchers, the hosts discuss the topic of consumer reviews and the actions taken by the National Advertising Division (NAD) to ensure their accuracy. They highlight several recent NAD cases related to consumer reviews, including challenges to claims made by Proz hair care products, MyPatriot Supply, Goose Creek candles, and Dr. Squatch. The hosts also provide tips for advertisers on collecting and using reviews, such as ensuring reviews are representative, disclosing incentives, and not inflating star ratings.

Key Takeaways

  • (00:30) Consumer reviews have become an important part of the purchasing process. In the digital age, consumers heavily rely on reviews to inform their buying decisions. The feedback provided by other consumers offers valuable insights into product quality and performance.
  • (6:45) NAD has been actively involved in reviewing claims related to consumer reviews. The National Advertising Division (NAD) diligently scrutinizes advertisements that make assertions based on consumer reviews. NAD takes decisive action against advertisers found guilty of disseminating deceptive or misleading claims.
  • (9:10) Advertisers should not take actions that distort or misrepresent consumer opinions. Distorting or misrepresenting consumer opinions, even if disguised as endorsements, erodes trust and damages brand reputation. Upholding integrity in representing consumer sentiments is paramount for fostering long-term relationships and brand loyalty.
  • (18: 58) Advertisers should be mindful of how reviews are collected and counted. Advertisers must ensure that the methodology used for collecting and tallying reviews is transparent and unbiased. It’s crucial for reviews to accurately reflect the sentiments of the target demographic to maintain credibility
  • (19:34) Incentives for reviews should be disclosed, and star ratings should be representative. Transparency regarding incentives for reviews is essential to maintain trust and credibility with consumers. Star ratings should accurately mirror the overall sentiment of all reviews, providing an unbiased assessment of product performance.