The National Advertising Division of the Better Business Bureau has referred advertising for inkjet ink and printers, published by Eastman Kodak Co., to the Federal Trade Commission (FTC) for further review, following Kodak’s decision not to participate in an NAD proceeding.
The advertising at issue was challenged before NAD, the advertising industry’s self-regulatory forum, by HP, a maker of competing ink and printers.
NAD requested substantiation for claims that consumers will save on average $110 annually on ink by switching to Kodak ink and printers.
NAD noted that it was disappointed that the advertiser declined to participate in the self-regulatory proceeding. In light of the advertiser’s position and pursuant to NAD procedures, NAD has referred the matter to the FTC for review.
Kodak holds an F Rating with the BBB. Reasons for the rating include a failure to respond to complaints filed against their business, the number of complaints filed against their business that were unresolved, the overall complaint history with BBB and the length of time business has taken to resolve complaint(s). A total of 438 complaints were processed by the BBB in the last 36 months and a total of 170 complaints in the last 12 months.
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/CARU Case Report.
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About Advertising Industry Self-Regulation: 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) and Children’s Advertising Review Unit (CARU), as well as for the National Advertising Review Board (NARB) and the Electronic Retailing Self-Regulation Program (ERSP).
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. 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/NARC/NARB’s sole source of funding is derived from membership fees paid to the CBBB. ERSP’s funding is derived from membership in the Electronic Retailing Association. For more information about advertising self regulation, please visit www.narcpartners.org.