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For more than 50 years, the National Advertising Division (NAD) of the Better Business Bureau's National Programs has provided a self-regulatory system for resolving advertising disputes. It offers a cost-effective, voluntary alternative to litigation, allowing competitors to challenge advertising claims based on specific procedures.
NAD evaluates claims for truthfulness and substantiation, aligning with standards from agencies like the FTC, FCC, and FDA. Challenges are initiated via a letter outlining alleged false or misleading claims.
Both parties submit evidence and meet with NAD to clarify positions. NAD's final decisions may require claims to be modified or discontinued, with outcomes published in case reports.
While challenges are voluntary, non-compliance results in referrals to regulatory agencies. NAD ensures a fair process by placing the burden of proof on advertisers to substantiate claims.
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