In This Issue:
- One Step Over the Line: NARB Sets a High Bar for Review Site Compliance
- NAD Expands SWIFT to Accept Implied Claims
- Is There No Such Thing as a Bargain Anymore?
One Step Over the Line: NARB Sets a High Bar for Review Site Compliance
Whether it is the FTC or the National Advertising Division, reviews are a hot topic and content posted by third-party review sites an even hotter one. The line between unbiased reviews and affiliate advertising and by association between editorial content and advertising came under close scrutiny by the NARB in affirming NAD's underlying decision that third-party review website Smile Prep had crossed that line. The result for Smile Prep is unprecedented "ad" disclosure, and discontinuance for some and the need for independent support for other product "claims."
Smile Prep's business model is not unique: it is an "independent" review site for at-home tooth-straightening products whose revenue relies on affiliate commissions from the companies that manufacture and sell many but not all of the products reviewed. Not all products reviewed have commission relationships with Smile Prep, and Smile Prep disclosed in fairly standard terms the nature of the relationships—albeit in language the NAD and NARB found implied an unbiased relationship the self-regulatory bodies didn't buy.
As an initial matter, NARB agreed with NAD that despite no indication the affiliates controlled the content on the site, that review content constituted...
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