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NARB Quarterly - Winter 2006 (Volume No. 4)
LETTER FROM THE CHAIR
Howard BellWith the close of 2005, four board members have completed their terms of service to the National Advertising Review Board.

It has been a privilege to work with Thomas Haas, chief marketing officer, Siemens Corp.; Ralph Evert, an attorney with Paul, Hastings, Janofsky and Walker; Thomas Bowers, Senior Associate Dean University of North Carolina School of Journalism and Mass Communication and Mark Serrianne, CEO of Northlich. On behalf of the NARB, I wish you well and thank you for so generously volunteering your time and expertise.

The value of the contribution made by NARB volunteers is underscored in the fine essay Mark Serrianne authored for this edition of the NARB Quarterly. As he notes, in Observations of a NARB Panelist, that "the work of NAD and engagement of NARB panelists is serious stuff."

"Rulings generally have far-reaching financial implications as they relate to copy claims, claim support, visualization, creative interpretation, packaging presentation and other factors," he writes. "For large national advertisers, the cost of material revisions and media spending adjustments can be substantial. Moreover, rulings often have a direct impact on marketing strategy and positioning, which has cascading implications."

This edition will also point you to available sources of information regarding weight loss, courtesy of NARB panelist Dr. Jan LeBlanc Wicks. Jan served on Panel 129, which dealt with weight-loss issues and she went to considerable trouble to provide her NARB colleagues with fine, solid information.

We will be announcing new NARB members in our Spring NARB Quarterly.

Until then, my warm regards,
Howard Bell
Chair, NARB

NEWS
Public member Joan Z. (Jodie) Bernstein, of counsel at Bryan Cave LLP, has been tapped by the Council of Better Business Bureaus to lead a review of the Children's Advertising Review Unit Self-Regulatory Guidelines for Children's Advertising. The full text of the press release announcing her new role can be found at www.caru.org.
PANEL UPDATE
REPORT OF NARB PANEL #128
(8/16/2005)
For full text of Panel Report #128 (PDF format) click here
Appeal of the NAD Final Decision Regarding Advertising
by Abbott Laboratories for Similac Advance
Background:
This case arose from a challenge filed by Mead Johnson ("Mead") concerning advertising for Similac AdvanceŽ infant formula by the Ross Products Division of Abbott Laboratories ("Ross"). The challenged advertisements included claims that "Similac AdvanceŽ can help develop a baby's immune system like breast milk;" "Only Similac AdvanceŽ has a patented blend of special breast milk nutrients called nucleotides, which has been clinically shown to help support the development of a baby's immune system like breast milk;" and Similar AdvanceŽ results in "immune cell development." All such claims were accompanied by a disclaimer which stated:

The clinical study showed immune cell development. Whether this development provides immune protection like the breastfed infant has not been shown. Breast milk also contains antibodies not found in infant formulas that are important for a baby's immune protection.

Mead alleged that these claims were unsubstantiated, misleading, and confusing to consumers. Specifically Mead argued that there was no scientific support to claim that infants fed Similac AdvanceŽ received a greater immune benefit than other populations of infants. Mead also argued that the term "development" in the context of a child's immune system necessarily implied increased immune "protection." According to Mead, claiming that Similac AdvanceŽ "developed" a baby's immune system while disclaiming that this development provided enhanced "protection" was inherently contradictory.

NAD recommended that Ross modify its advertisements to avoid any implication that Similac AdvanceŽ is "like" breast milk. NAD also recommended that Ross avoid any implication that Similac AdvanceŽ is the only infant formula containing nucleotides.

Decision
The panel recommended that Ross discontinue the advertising claims at issue in this case -- that nucleotide-supplemented formula helps develop or support the development of a baby's immune system compared to formulas without nucleotide supplementation -- unless Ross has competent and reliable evidence establishing that nucleotide supplementation provides better immunity protection (i.e., better resistance to infection and disease).

The following served as panel members on NARB Panel #128:

  • David May (Chair), Vice President, Global Marketing, Goldman, Sachs & Company
  • Jodie Bernstein, Counsel, Bryan Cave
  • Phyllis Woolley-Roy, Director Multicultural Marketing, AstraZeneca Pharmaceuticals
  • Cheryl Greene, Managing Partner & Chief Strategy Officer, Deutsch, Inc.

NARB Panel #129
(11/10/2005)
For full text of Panel Report #129 (PDF format) click here
Appeal of NAD Final Decision
Regarding Advertising by Waterfront Media, Inc.
Background:
This case arose from a challenge filed by WeightWatchers.Com ("Weight Watchers") concerning advertising by Waterfront Media, Inc. ("Waterfront") for Denise Austin's Fit Forever online program.

Weight Watchers challenged a number of general and specific weight loss claims made in promotion of Denise Austin's Fit Forever online program. While NAD found that the general weight loss claims were substantiated, it found that the specific claims were not substantiated and recommended that Waterfront discontinue specific claims such as "Lose 12 pounds in 6 weeks" and "Lose 12+ pounds." Waterfront appealed this recommendation.

Weight Watchers also challenged general and specific body shaping and spot reduction claims. While NAD found that the general body shaping and spot reduction claims were substantiated, it found that the specific claims were not substantiated and recommended that Waterfront discontinue specific claims such as "Shed 1-2 inches from your waist," "Lose 1 inch from each thigh," and "Drop 1-2 Dress Sizes." Waterfront also appealed this recommendation.

Weight Watchers further challenged a number of consumer testimonials, and NAD recommended that Waterfront discontinue the testimonials or, alternatively, modify its advertising to include qualifying language that these results are not typical of the weight loss consumers can generally expect to achieve. Waterfront did not appeal this recommendation, and thus the issue of testimonials was not before the panel.

Decision: The panel found that Waterfront did not have sufficient substantiation to support the specific weight claims that were challenged, and recommended that they be discontinued. The panel further found that Waterfront did not have sufficient substantiation to support the specific body shaping and spot reductions claims that were challenged, and recommends that they be discontinued.

The following members served on NARB Panel #129:

  • Chris Pulleyn (Chair), CEO & Chair, Buck & Pulleyn, Inc.
  • Michael Scherb, Director, Corporate Advertising and Branding, PSE&G
  • Mark Wolf, Manager, Market Research, Guardian Life Insurance Company of America
  • Dr. Jan LeBlanc Wicks, Associate Professor, University of Arkansas

NARB Panel #130
(10/20/2005)
For full text of Panel Report #130 (PDF format) click here
Appeal of NAD Final Decision
Regarding Advertising by Spectrum Brands (formerly Rayovac Corporation)
Background:
This case arose from a challenge filed by Energizer Holdings, Inc. ("Energizer") concerning advertising for the Rayovac I-C3 15-Minute Charger by Spectrum Brands (formerly Rayovac Corporation) ("Rayovac"). The challenged advertisements included claims that Rayovac's I-C3 15- Minute Charger packaged with its branded batteries is the "World's Only 15-Minute Rechargeable System" and the "World's Best Rechargeable System."

NAD recommended that Rayovac discontinue the claim that its product is the "World's Only 15-Minute Rechargeable System," and Rayovac agreed to discontinue that claim.

NAD also recommended that Rayovac discontinue the claim that its product is the "World's Best Rechargeable System," although NAD recognized that Rayovac could make a more limited superiority claim with respect to its charger's ability to charge branded AAA batteries in 15 minutes. Rayovac appealed this recommendation to the NARB.

Decision: The panel recommended that Rayovac discontinue its claim that its 15-minute charger is the "World's Best Rechargeable System."

The following members served on NARB Panel #129:

  • Suzette Heiman (Chair), Director of Planning and Communications, Missouri School of Journalism
  • Patti Wells, Finance Manager, General Mills, Inc.
  • Elaine Lawson, Senior Manager, Verizon Communications
  • Mark Serrianne, CEO, Northlich
MEMBERS CORNER
Self-Regulation and Weight Loss Advertising: Staying Informed
by Dr. Jan LeBlanc Wicks

In September 2002 the Federal Trade Commission (FTC) reported that false claims were common in weight loss advertising, with many "grossly exaggerated or clearly unsubstantiated performance claims" of particular concern. In April 2005 the FTC reported the number of obviously false claims in broadcast and print weight loss and diet advertisements had dropped significantly. The FTC noted that media outlets had responded to its call to refuse to run ads with clearly false weight loss claims, suggesting that self-regulation can play an important role.

Serving on a recent NARB panel for a weight loss product reminded me of various sources of information that may be useful to concerned advertisers, broadcasters and publishers. The FTC provided guidance for screening false claims and examples of obviously false weight loss claims. In its "Red Flag" report (available at www.ftc.gov/bcp/conline/pubs/buspubs/redflag.pdf ), the FTC noted a claim is too good to be true if it says the product will:

  • Cause weight loss of two pounds or more a week for a month or more without dieting or exercise
  • Cause substantial weight loss no matter what or how much the consumer eats
  • Cause permanent weight loss (even when the consumer stops using the product)
  • Block the absorption of fat or calories to enable consumers to lose substantial weight
  • Safely enable consumers to lose more than three pounds per week for more than four weeks
  • Cause substantial weight loss for all users
  • Cause substantial weight loss by wearing it on the body or rubbing it into the skin

The FTC also noted several techniques that "should raise red flags about the veracity of the claims" (www.ftc.gov/bcp/reports/weightloss.pdf):

  • Consumer Testimonials/Before-After Photos
  • Rapid Weight-loss Claims
  • No Diet or Exercise Required Claims
  • Long-Term/Permanent Weight Loss Claims
  • Clinically Proven/Doctor Approved Claims
  • Natural/Safe Weight Loss Claims

Certainly it can be difficult to stay abreast of the numerous types of false claims used in weight loss advertising. And new misleading claims and techniques may arise in the future. To stay abreast, use the Search function on the FTC's home page (www.ftc.gov), entering the words "weight loss advertising" in the search box to locate new reports or weight loss cases. The FTC provided several Web sites to inform concerned advertisers and media executives about fraudulent weight loss claims:

In addition, there are ways to help inform consumers about healthy weight loss. The FTC provides several of its weight loss banner ads (at www.ftc.gov/ftc/consumer/partners_banners.html) available for posting on other web sites to provide advice on healthy weight to consumers. FTC sites providing consumer information are:

Finally, given the serious health problems associated with the rising obesity levels in the U.S., advertisers must take special care to substantiate claims regarding the performance of their specific products or programs. Extra care is needed when the health of consumers is involved. The findings of NARB Panel #129 reiterate the need to provide support specific to the program and the claims made. The FTC's recent finding that obviously false weight loss claims are declining suggests concerned advertisers and media executives are making important contributions to improving the accuracy of advertising. Staying informed about deceptive weight loss advertising should help the industry to make further strides in effective self-regulation.

(Dr. Jan Wicks is an Associate Professor at the University of Arkansas and a NARB Public Member)


Observations of a NARB Panelist
by Mark Serrianne

For the past six years, I have had the privilege of serving on the NARB. I don't use the word "privilege" loosely because the responsibility, personal learning and association have been quite beneficial and rewarding.

Like many others in our industry, I had been fairly disconnected from the NAD, apart from a rudimentary picture of what goes on there. I generally knew it as an industry self-regulatory body that helps bring peace to advertiser conflict and saves advertisers big legal costs by settling activity out of court.

These perceptions actually proved to be quite accurate. Eye-opening, however, was the management quality, dedication, sophistication, and selfless volunteerism embedded in the organization and its processes. The legal team and executives at NAD are first rate. They are rigorous in the protection of consumers, thorough in the assessment and evaluation of issues, and refreshingly blunt in the clarity and recommendations of their rulings.

Each and every case has been unique and challenging. From a human interest standpoint, I have been witness to some surprising courtroom theatrics. But more often, the exhaustive research findings and thorough presentations of data from expert witnesses have served as sound foundations for decision-making.

First and foremost, I've learned that the work of NAD and engagement of NARB panelists is serious stuff. Rulings generally have far-reaching financial implications as they relate to copy claims, claim support, visualization, creative interpretation, packaging presentation and other factors. For large national advertisers, the cost of material revisions and media spending adjustments can be substantial. Moreover, rulings often have a direct impact on marketing strategy and positioning, which has cascading implications. While an advertiser can certainly thumb its nose at the outcome of a decision and take the matter to court, the forum and professionalism of the process keep this to an absolute minimum.

Knowing this, I am pleased to report that in virtually every case I've seen, NARB panelists have been thoughtfully chosen and thoroughly prepared. These unbiased jurists are drawn from a volunteer pool of well-regarded educators, advertisers and agencies. Frankly, it is flattering to be in their company. I have benefited from listening to their views and have enhanced my career and business with new connections to such dedicated professionals.

I have also observed advertisers who've steadfastly defended and challenged cases with the highest of intentions. Their convictions are thoroughly documented, expertly presented, and debated in forum of mutual respect. This backdrop enables NARB panelists to deliberate thoughtfully and arrive at a fair decision.

Most important, I've learned the ultimate beneficiary of this self-regulatory process is the consumer - a consumer who deserves an honest and provocative presentation of a selling message. How fortunate we are to work in an industry that champions and safeguards creativity and truth in the same breath.

(Mark Serrianne is CEO of Northlich and was a NARB Member from 2000-2006)

NARC Partners

In 1971, the Association of National Advertisers (ANA), the American Association of Advertising Agencies (AAAA), and the American Advertising Federation (AAF) formed an alliance with the Council of Better Business Bureaus (CBBB) to create an independent self-regulatory body-the National Advertising Review Council (NARC).

You may link to our partner organization by clicking on the links below:

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