National Advertising Division

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The National Advertising Division (NAD) is a part of the Council of Better Business Bureaus.

The CBBB describes itself on its website as "the umbrella organization for the Better Business Bureau (BBB) system, which was founded in 1912 and is today supported by more than 300,000 local business members nationwide. It is dedicated to fostering fair and honest relationships between businesses and consumers, instilling consumer confidence and contributing to an ethical business environment. The CBBB is supported by its membership consisting of nearly 300 leading-edge national corporations, and by Better Business Bureaus and branches in over 150 locations. The CBBB and all local Better Business Bureaus are private, non-profit organizations funded by membership dues and other support. [1]

The NAD provides a process by which allegations of false or misleading advertising and marketing claims can be resolved outside of the court or governmental regulatory process.

NAD describes itself thus on its website: "National advertisers who use the NAD process find it to be significantly less expensive than litigation. By utilizing NAD, cost-conscious companies save hundreds of thousands of dollars typically spent seeking reparation through the courts. NAD adheres to a strict timetable; providing a written decision within 60 business days. Companies can expect advertising challenges to be resolved while the ad campaign is still running. And, unlike judicial files, NAD keeps confidential all data it receives in reviewing a case. The challenger's and advertiser's positions, NAD's decision and a statement by the advertiser are made public. ... Government regulation is usually costly and burdensome. NAD has earned the respect of consumers and regulators alike for providing an effective, successful self-regulatory mechanism. ... As we enter the Information Age, it becomes more and more difficult to monitor the message content of advertisements. Businesses are encouraged to use the NAD to voice their concerns about potentially misleading national advertising claims." [2]

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