Tag Archives: National Advertising Division

ILN Today Post

NAD Decision on Challenge to Wegmans’ In-Store Point of Sale Displays Offers Guidance on Grocery Store Price Advertising

A decision by the National Advertising Division (NAD) on a challenge by Costco Wholesale Corporation to in-store point of sale display advertising by Wegmans Food Markets, Inc. offers important lessons for grocery stores and other retailers interested in making comparative pricing claims.

Costco’s Challenge
Costco challenged Wegmans’ in-store point of sale displays, which compared Wegmans’ prices for certain food products to Costco’s prices for the same or similar products.

Read More

Read full article

Advertising Claim Substantiation: 5 out of 5 Readers Will Love this Article

20,679 physicians say Lucky Strike [cigarettes] are less irritating. It’s hard to imagine that a claim from a 1930s Lucky Strike ad survived today’s regulatory and class-action environment. Someone would take a shot at the ad: a competitor brand, the Federal Trade Commission (FTC), or consumers.

But maybe we haven’t evolved all that much. Here is another number: advertising claim substantiation fails nearly three out of four times. This one is true. Looking at 68 consumer perception surveys deployed by brands and their challengers from 2006 to 2011, 71% were deemed unreliable by the National Advertising Division (NAD) of the Council of Better Business Bureaus, which offers alternative dispute resolution for advertisers.

Read full article