United States: National Advertising Division (NAD) Update - August 9, 2016

SharkNinja Operating, LLC (Shark Rotator Powered Lift-Away and Shark Rocket Powerhead Vacuum Cleaners), NAD Case No. 5948 (Apr. 25, 2016)

NAD reviewed several claims made by Shark, including the claim that "Americans now choose Shark 2-to-1 over Dyson." Noting that "NAD has cautioned advertisers in prior decisions that total sales are not always synonymous with consumer preference," NAD found the consumer preference claim unsupported and recommended that the advertiser discontinue the claim. However, NAD observed that Shark could make a comparative claim based on unit sales (e.g., "Shark outsells Dyson 2-to-1"), provided that the claim is accurate and does not imply a head-to-head preference. In addition, NAD recommended that Shark modify a commercial depicting a head-to-head comparison demonstration by changing the references from "Dyson" to "Dyson Cinetic Big Ball" to prevent consumers from concluding that the demonstration applies to other Dyson vacuums. View the press release.

Intraceuticals LLC (Atoxelene Skin Care Products), NAD Case No. 5953 (May 12, 2016)

NAD reviewed claims that Atoxelene Skin Care Products "instantly reduce the visible signs of premature skin aging." NAD found that the claims "reasonably convey the [unsubstantiated] message that a single application [of the product] will result in a visible reduction in wrinkles and/or other signs of aging skin" and recommended that the claims be discontinued. Assessing claims substantiation, NAD noted that testing data on individual ingredients generally cannot support overall performance claims for the product, and also that laboratory testing (or in vitro testing) is unlikely to be sufficient to demonstrate the results that consumers can expect when using the product themselves. View the press release.

Applegate Insulation (Cellulose Insulation Products), NAD Case No. 5961 (June 3, 2016)

NAD reviewed certain claims made by Applegate Insulation stating that cellulose insulation provides superior energy savings over fiberglass insulation and thereby reduces consumers' heating and cooling bills. Applegate's advertising cited the results of several studies to support its claims. NAD found that the references to the studies in the comparative performance claims reasonably convey that consumers "will actually experience the same energy savings as reported in these studies" and recommended that the claims be discontinued. NAD also recommended that the advertiser discontinue unsupported claims that the fire retardants used in manufacturing its product are "non-toxic." However, the advertiser was not precluded from making "an appropriately qualified claim about the safety of its product." NAD also determined that the advertiser provided a reasonable basis for its "R-value-per-inch claims," (R-values are a measure of a material's resistance to heat flow) and found that the FTC's regulations on insulation manufacturers did not prohibit the advertiser from making R-value-per-inch claims. View the press release.

Verizon Communications, Inc. (FiOS), NAD Case No. 5886, NARB Case No. 209 (Apr. 11, 2016)

NARB reviewed an NAD decision finding that certain of Verizon's advertising communicated that FiOS internet speed and HD picture quality were superior to its competition's. The challenged claims included the following: "In customer satisfaction studies FiOS is rated #1 in Internet speed ... 8 years running," and "TV service rated number one in HD picture quality ... based on customer satisfaction studies ...." NARB found that in the television advertisements containing visuals touting the No. 1 ratings in internet speed and HD picture quality, reasonable consumers could conclude that the rating was based on a direct measurement or comparison. NARB therefore recommended "the challenged advertisement[s] be modified to more clearly communicate that the higher rating with respect to Internet speed" and "HD picture quality" represents "a customer satisfaction rating based on consumers' rating of their own Internet service providers." View the press release.

The Clorox Company (Glad Tall Kitchen Drawstring Bags), NAD Case No. 5951 (May 10, 2016)

NAD reviewed the claim that Glad Tall Kitchen Drawstring Bags provide "Antimicrobial Protection of the Drawstring from Odors." The challenger objected to the implied claim that the product protects against food-borne or disease-causing microbes. NAD found the challenger's consumer perception survey to be insufficiently reliable in its sample and methodology. Instead, NAD used its own expertise to evaluate the advertisement's message and concluded that, although the message is literally true, the design (including a prominent Clorox label) conveys a confusing message as to the product's specific antimicrobial protection and has the potential to convey an inaccurate message as to the nature of Clorox's partnership with the advertiser. NAD recommended that the packaging be modified to state that the product contains an antimicrobial agent to control drawstring odor. NAD also recommended that the font size be increased so as not to be "overshadowed by the presence of the Clorox logo." View the press release.

Joyus, Inc. (Dr. Brandt's Needles No More Wrinkle Relaxing Cream), NAD Case No. 5956 (May 19, 2016)

NAD reviewed a form of native advertising by an online shopping retailer for a product that appeared in "Stuff We Love" in People magazine's online edition. The section contained a list of videos; only once a reader clicks on a link does the video reveal elements indicating that it is a shopping video. NAD was concerned that consumers may interact with this content thinking that it was purely editorial. NAD recommended that the advertiser disclose that the page is a shopping page and that each "link itself or text surrounding the link should advise consumers that the content to which consumers are linking is an advertisement or make clear that the links are 'shopping' links." NAD also referenced the FTC's recently issued Enforcement Policy Statement on Deceptively Formatted Advertisements stating that "advertising should be identifiable as advertising to avoid misleading consumers into believing that an advertisement is independent and impartial." View the press release.

Sprint Corporation (Advertising by Sprint Corporation), NAD Case No. 5958 (May 20, 2016)

NAD reviewed broadcast, radio, internet and social media advertising containing pricing claims about Sprint's wireless service compared to the competition's. The advertiser voluntarily discontinued claims that switching to Sprint would "cut your bill in half," and NAD recommended that Sprint's comparative television commercials be discontinued because the "references to the limitations are blurred by the fast-moving audio and visual elements of the commercials which also make the supers, which refer to rate plans as well as limitations and restrictions, difficult to read, notice and understand." NAD also noted that sweeping rate comparisons may simply be too complex to explain in 15- to 30-second broadcast commercials. NAD found the advertiser's "50% off most T-Mobile rate plans" claim in print and internet advertising was reasonably substantiated but should "clearly and conspicuously state the basis of its comparison." Additionally, the disclosure should include both "the $36-per-line activation fee" and "the material differences in its plans versus" its competitors' plans. View the press release.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.