Advertising Law - NAD
 
The National Advertising Division (NAD) of the Council of Better Business Bureaus provides advertisers with cost effective ways to challenge national advertising, short of civil litigation. Based in New York City, the NAD is the premier advertising self-regulatory body in the United States, and has received enthusiastic support from the Federal Trade Commission (FTC) and the private industry.

Kelley Drye & Warren’s advertising practice has significant experience in challenging and defending cases before the NAD. Our attorneys also have experience appearing before the National Advertising Review Board, if NAD decisions are appealed.

The NAD resolves advertising cases more quickly than civil litigation does, usually within three months. Critical to the NAD’s consistent success, its experienced legal team provides personal attention to the cases and is sensitive to the balance between consumer protection and free commercial speech.

Kelley Drye & Warren's recent successes have included defense and challenge wins for Nextel Communications, Inc.; Nike; Minwax, Inc.; BellSouth Corporation; Oracle; Bissell Homecare, Inc.; Honeywell International; and Burger King.

Specific cases include:

  • In winter 2007, on behalf of the American Chemistry Council, we successfully challenged advertising claims made for Born Free baby bottles. The claims at issue attempted to exploit a minority of scientific opinion in the sale of baby bottles that do not contain bisphenol-A. The NAD agreed that the Born Free claims were unsubstantiated and recommended that they be discontinued.


  • In August 2005 Kelley Drye & Warren challenged a number of claims in United Online’s NetZero advertisements, including the claim that United Online’s NetZero HiSpeed 3G dial-up service allows users “to surf at broadband-like speeds,” and that this service was “the fastest dial-up service you can get.” In November 2005, the NAD agreed that these claims were misleading. United Online agreed to comply with all aspects of the NAD decision, except for the NAD’s recommendation that the company discontinue the broadband comparisons. United Online appealed this part of the decision. In April 2006, the NARB rejected United Online's argument, adopting Kelley Drye & Warren's arguments instead and affirming the NAD’s decision.


  • The NAD found in favor of our client, Verizon Online, in a challenge that we brought concerning Optimum Online’s advertising, which compared DSL and cable broadband service. The challenged ads included commercials that poked fun at DSL service and employees, and claimed that all DSL plans have hefty termination fees and annual contracts. We also challenged Optimum Online’s website claim that it had the “fastest Internet access."


  • In a case against the Valvoline Company, the NAD ruled in favor of our client, Honeywell, who challenged the truth and accuracy of Valvoline’s advertising claims related to its Zerex G-05 Extended Life Antifreeze.


  • The NAD ruled in favor of Kelley Drye & Warren client, The Vitamin Shoppe, in a case against NBTY, Inc. The Vitamin Shoppe challenged the truth and accuracy of NBTY’s advertising claims related to its Puritan’s Pride vitamin supplements. It also asked that NBTY discontinue an offer for “buy one, get one 50% off” and modify its pricing structure when advertising for Vitamin World.


  • On behalf of Nextel Communications, Inc., we forced Verizon Wireless to modify their claims regarding the scope of coverage for their “In Network” rate plan and, in a separate action, demonstrated that Nextel’s claim that its Direct Connect service was available “coast to coast” was substantiated.


  • In a challenge brought by the NAD against our client NIKE, Inc., we demonstrated that claims made for NIKE eyewear were truthful and accurate.


  • On behalf of BellSouth Corporation, our team successfully argued that advertisements claiming that Joi Express Internet Service offered “Dial-up at DSL Speed” were false and misleading. The NAD recommended that Hawk Communications discontinue or modify its claims. Hawk disregarded the NAD’s ruling, which led to our filing in U.S. District Court for the Northern District of Georgia.


  • We defended Bissell, Inc. in an advertising challenge that developed as a result of two consumer inquiries submitted to the Better Business Bureau alleging that the Bissell “steamer” did not really use steam to clean carpets. Ultimately, the NAD agreed that the use of the word “steamer” to describe an upright cleaning machine was not likely to mislead consumers which permitted our client to continue using the term.


  • When Microsoft Corporation initiated an advertising challenge against Oracle Corporation, we successfully preserved Oracle’s use of the word “unbreakable” in most cases. In addition, the NAD agreed that Oracle’s comparative price claims were completely substantiated.


  • On behalf of Honeywell International, we challenged advertisements for Peak Anti-Freeze produced by Old World International. Old World International permanently withdrew the advertisements and the NAD closed the case.


  • In a challenge brought by Burger King brands against Hardee’s, we argued that Hardee’s falsely implied that Hardee’s Thickburgers contained substantially more meat than Burger King burgers. After Hardee’s Food Systems voluntarily promised to discontinue its claims, the NAD closed the case.

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