Tag Archives: NAD Insights

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.