Tag Archives: Ad Watchers

Expanding Knowledge of Soft Law – What is CISR?

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The U.S. advertising industry founded the National Advertising Division (NAD) to build consumer trust in advertising and support fair competition in the marketplace. Through this soft law model, responsible brands voluntarily discontinue or modify challenged misleading ad claims. In this era of deregulation, industry leaders can learn from the advertising industry and keep moving forward even if government does not. 

In this episode of Ad Watchers, hosts Annie and Eric talk with Howard Smith, the Executive Director of the Center for Industry Self-Regulation (CISR), a charitable non-profit that is working to educate industries on the power of soft law. Howard discusses the current landscape, the call to action for business leaders to embrace industry self-regulation models for addressing systemic industry challenges, and how CISR is working on an education intuitive that will help provide a long-term solution.

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5 Years of SWIFT – Does it meet the need for speed?

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A single-issue ad law case does not mean it is not an important issue. For the last 5 years, the Fast-Track SWIFT filing track has addressed the increasing speed of online campaigns and the demand for the challenge process to keep pace, issuing decisions within 20 days of the challenge.

In this episode of Ad Watchers, hosts Annie and Eric discuss the rapid rise in single-issue advertising NAD challenges, a 3-fold increase in the last three years, and outline the types of cases seen, such as disclosure and #1 claims.

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The Ad Law Trend Report – What were 2024’s hot topics and trends?

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The National Advertising Division (NAD) Annual Report provides a comprehensive look at the year’s ad law trends and hot topics, from influencers to AI to reviews and rankings. 

To kick off a new season of Ad Watchers, hosts Eric and Annie provide insights from the 2024 Annual Report and discuss what’s next in the year ahead, along with some timely best practices for advertisers. 

Annie and Eric discuss the report, highlighting key trends in advertising law, including the rise of influencer marketing, AI challenges, and comparative claims. They emphasize the importance of compliance in health and safety claims and preview upcoming events, including the 2025 NAD conference.

Key Takeaways:

  • NAD has over 50 years of experience in advertising law.
  • The annual report reveals significant trends in advertising disputes.
  • Fast-Track SWIFT filings have increased by 50% since 2023.
  • Influencer marketing cases are on the rise, especially in beauty.
  • AI-related advertising issues are becoming more prevalent.
  • Comparative claims continue to be a major focus for NAD.
  • Health claims require competent and reliable scientific evidence.
  • NAD is seeing new product categories and challenges.
  • The 2025 NAD conference will be held in September in Washington, D.C.

Chapters:

[00:00] Introduction to NAD and Advertising Law
[02:12] Annual Report Insights and Trends
[07:29] Influencer Marketing and AI Challenges
[12:11] Comparative Claims and Industry-Specific Cases
[17:03] Health and Safety Claims in Advertising
[19:29] Looking Ahead: NAD Conference and Future Trends

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.

Endorsements & Testimonials – So What’s New?

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In this episode of Ad Watchers, hosts Eric Unis and Annie Ugurlayan, attorneys at the National Advertising Division (NAD), revisit the Federal Trade Commission’s (FTC) Endorsement Guides. Given the recent updates to the Guides, the Ad Watchers have refreshed the tips and best practices from Season One for ensuring ad law compliance when using influencers, endorsements, and testimonials in your advertising campaigns. 

This episode presents recent cases before the National Advertising Division (NAD) demonstrating the issues outlined in the FTC’s Endorsement Guides and for each case, outlines the best practices you should follow to stay off the radar of the FTC and NAD.

Some Key Takeaways from today’s episode:

  1. (1:28) Endorsements and Testimonials Integrity: Endorsements and testimonials are essential elements of advertising but must authentically represent the genuine opinions of the endorser. Any material connections between the endorser and the advertiser must be transparently disclosed, ensuring honesty and integrity in consumer communication.
  2. (7:51) Combating Fake Reviews and Influencer Misuse: Addressing the prevalence of fake reviews and the misuse of influencers, including animal influencers, is crucial in maintaining the credibility and trustworthiness of advertising channels. Regulators and industry stakeholders must collaborate to establish stringent measures to mitigate these issues and uphold the integrity of consumer information.
  3. (14:11) Transparency in Review Sites: Review sites play a significant role in consumer decision-making, and it’s essential that they transparently disclose whether rankings and reviews are advertisements or independent assessments. Such transparency empowers consumers to make informed choices while safeguarding against misleading advertising practices.
  4. (19:00) Clear and Conspicuous Disclosures: Transparency is key in consumer communication, necessitating clear and conspicuous disclosures visible across all devices. These disclosures should be positioned in the same location and format as the endorsement, ensuring consumers readily recognize affiliations between the endorser and the advertiser.

For more information, visit: NAD FAQs

Contact Information: programs@bbbnp.org