When to Choose Between a Lawsuit or Filing a Challenge With the NAD
A competitor has engaged in high-profile false advertising, and your CEO wants to use an enforcement hammer with more weight than a cease-and-desist letter. Or maybe you sent a letter but didn't get sufficient movement from the other side. Should you pursue a court action or file a challenge with the National Advertising Division (NAD)? Let's talk strategy.
For those unfamiliar with it, the NAD is a voluntary self-regulatory forum for the resolution of false advertising disputes. Created in 1971 and located in New York, the NAD provides a streamlined forum for competitors to challenge advertising claims. Disputes are heard by staff attorneys who are well-versed at reviewing advertising claims and supporting evidence. The NAD's jurisdiction is limited to "national advertising," but this is defined broadly to include advertising disseminated "to a substantial portion of the United States."
