Advertising Industry Self-Regulation

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Advertising Industry Self-Regulation

FTC Workshop On Enforceable Codes of Conduct: Protecting Consumers Across Borders

C. Lee Peeler

President, National Advertising Review Council

EVP, National Advertising, CBBB

November 29, 2012

Washington D.C.

U.S. National Advertising Programs

  • NAD – 1971: Developed in response to consumers’ concerns about truth and accuracy in advertising.

  • CARU – 1974: Chartered to assure that advertisers would take special care in addressing advertising messages to a vulnerable audience.

  • ERSP – 2004: Developed at the request of ERA to help combat a negative perception of direct-response marketing and monitor industry “outliers.”

  • Initiative – 2006: Formed to address broad public concern over advertising and childhood obesity.

  • NAD/CRN – 2007: Created in cooperation with the Council for Responsible Nutrition to expand NAD’s review of dietary-supplement advertising and rein in outrageous claims.

  • Online Interest-Based Advertising Accountability Program –

2011: Developed in cooperation with the Digital Advertising Alliance to ensure industry compliance with the Self-Regulatory Principles for Online Behavioral Advertising (Principles).

Four Characteristics of Effective Self-Regulation

  • Meaningful Standards

  • Independent: Administered by a respected third party – Council of Better Business Bureaus.

  • Transparent: The outcome of every case is publicly reported.

  • Accountable: Companies that refuse to comply are publicly identified and referred to the appropriate government agency.

INDEPENDENT: Administered by the Council of Better Business Bureaus

  • 100 year –old organization to advance trust in marketplace

  • 114 Bureaus nationwide in U.S. & Canada

  • Complaint Resolution -1 million consumer complaints

  • Business Ratings

  • No Government funding

BBB System

BBB Business Reviews

TRANSPARENT: Public Decisions

ACCOUNTABLE: Non-Compliance? Non-Participation? FTC Requires Oreck to Stop Making ‘False,’ ‘Unproven’ Claims

Maker of Oregano Supplement Agrees to Pay $2.5 Million to Settle FTC Charges


  • Truthful ad claims

  • Clear audio & visual disclosures

  • Don’t advertise inappropriate products

  • Always show safe use

  • Don’t use peer pressure

  • Protect privacy


New for 2013

  • Expanded coverage to multi-site data collection

  • Restrictions on use for eligibility for credit, insurance, employment

Thank you.

Thank you.

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