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.
In this episode, the National Advertising Division (NAD) examines the rapid rise in pharma and health-related cases—now a significant and growing share of its docket. The conversation explores some of today’s most closely scrutinized issues, including GLP-1 and compounded drug claims, and a wide variety of health claims from eczema to plantar fasciitis, as well as strikethrough pricing and endorsement disclosures.
This episode offers a timely look at how self-regulation is shaping industry practices through its wide-ranging guidance amidst increasing legal and regulatory pressure.
It is common for advertisers to engage in a little healthy competition, directly comparing their products to a competitor’s to inform consumers about the differences between them. But what happens when things get mean? It crosses the line when denigrating claims are false.
The National Advertising Division’s (NAD) mission is to ensure that consumers are getting accurate advertising, to enhance trust in the marketplace. In this final episode of the season, hosts Annie and Eric discuss denigrating claims cases that have come before NAD and how our advertising lawyers break down when a line has been crossed.
Tune in to learn practical lessons for advertisers, lawyers, and marketing teams navigating competitor claims.
In 2024, 82% of U.S. marketers used influencer partnerships in ad campaigns at a value of a whopping $24 billion. Influencer marketing is a key cornerstone of marketing campaigns, but how much do consumers trust influencers and influencer marketing?
In this episode of Ad Watchers, hosts Annie and Eric are joined by Katie Goldstein of SuperAwesome to discuss recent data commissioned by the National Advertising Division to establish consumer trust in influencer advertising. The survey found that one of the biggest reasons for distrust in influencers is a lack of transparency and honesty about brand association and the disclosure of the connection to the brand. They dig into the data, discuss influencer best practices for brands, and learn about influencer trust as it relates to children.
Key Takeaways:
00:00 Influencer marketing is a cornerstone of modern advertising. 05:48 Consumers expect transparency in influencer-brand relationships. 10:16 Younger demographics are more trusting of influencers but require clear disclosures. 17:09 AI in advertising poses potential risks for misleading claims. 23:02 Key Takeaways and Conclusion:
Parents should actively engage with their children’s online content.
Not all influencer content is harmful; some can be beneficial.
Brands need to align with influencers who share their values.
Transparency is crucial for building trust with younger audiences.
The FTC emphasizes the need for clear advertising disclosures to kids.
Understanding the content can lead to better conversations between parents and children.
Health-related advertising claims are held to a higher standard of proof than other claims. For health-related claims, a “reasonable basis” requires advertisers to provide competent and reliable scientific evidence (CARSE). In this episode, your hosts Annie and Eric dig into the weeds of National Advertising Division cases on GLP-1, claims that certain foods could “boost brain health,” performance claims like “live longer” and “jump higher,” and other drug and dietary supplement claims, including those targeted to creating a “calm mood” in children.
Key Takeaways
00:00 Introduction to the National Advertising Division 00:56 Health Claims Overview 02:22 Regulatory Guidance on Health Claims 05:17 Competitor Challenges in Health Claims 08:38 Nutritional Claims and Evidence 11:31 Dietary Supplements and Drug Claims 14:24 Case Studies on Dietary Supplements 15:46 Advertising to Different Audiences 19:07 Claims in Sports Performance Products 22:26 Pain Relief Products and Evidence 23:51 Oral Care Products and Claims 28:36 Final Tips and Conclusion
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.
