Better Business Bureau Advertising Review Programs
For Immediate Release
Contact: 212.705.0120 Council of Better Business Bureaus, Inc.
National Advertising Division Press Release
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Due To Abuse Of The Process By The Challenger
NAD Is Forced To Administatively Close Gel Tech Case
New York, NY - March 17, 2000 - The National Advertising Division (NAD) of the Council of Better Business Bureaus, Inc. (CBBB) announced that due to a breach in the confidentiality of the NAD proceedings by the challenger, it has been forced to administratively close a case challenging the truth and accuracy of advertising for Ziacam Cold Remedy, a nasal spray, made by Gel Tech. The challenge was brought by Quigley Corporation, manufacturer of Cold-Eze lozenges, which breached the confidentiality provisions of its participation agreement and the NAD procedures by using the advertiser's submissions to the NAD as evidence in a different proceeding pending in Federal Court.
NAD's inquiry was conducted under NAD/CARU/NARB Procedures for the Voluntary Self-Regulation of National Advertising. Details of the initial inquiry, NAD's decision and the advertiser's response will be included in the next NAD Case Report.
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The National Advertising Review Council (NARC) was formed in 1971 by the Association of National Advertisers, Inc. (ANA), the American Association of Advertising Agencies, Inc. (AAAA), the American Advertising Federation, Inc. (AAF), and the Council of Better Business Bureaus, Inc. (CBBB). Its purpose is to foster truth and accuracy in national advertising through voluntary self-regulation. NARC is the body that establishes the policies and procedures for the CBBB's National Advertising Division (NAD), the Children's Advertising Review Unit (CARU), and the National Advertising Review Board (NARB).
NAD and CARU are the investigative arms of the advertising industry's voluntary self-regulation program. Their casework results from competitive challenges from other advertisers, and also from self-monitoring traditional and new media, including the Internet. The National Advertising Review Board (NARB), the appeals body, is a peer group from which ad-hoc panels are selected to adjudicate those cases that are not resolved at the NAD/CARU level. This unique, self-regulatory system is funded entirely by the business community; CARU is financed by the children's advertising industry, while NAD/NARB's sole source of funding is derived from membership fees paid to the Council of Better Business Bureaus. |
