Product Claim Types: *        Category ClaimClaimed to benefit an entire category , e.g., Works on all brands of..., Safe for..., etc. *       Non-Comparative Claim (Monadic)Claimed benefits of the product itself , e.g., Removes old..., Last for..., etc. *        Parity ClaimClaimed to be equal to alternatives , e.g., Compare to..., Uses same..., etc. *       Structure / Function ClaimTypically a HEALTH claim; FDA regulated , e.g., "calcium builds strong bones." *       Superiority ClaimClaimed to be better than alternatives , e.g., Faster..., Requires less..., etc. From the Federal Trade Commission (FTC): "When consumers see or hear an advertisement...federal law says that ad must be truthful, not misleading, and, when appropriate, backed by scientific evidence." Is Claim Substantiation Needed? Without it you may have to change labeling and advertising and/or pay a fine.

VIDEO: Claim Substantiation Webinar

Why?

National Advertising Division (NAD) of the Better Business Bureau and CARU, the children's arm of the advertising industry's self-regulation program are charged with the responsibility of monitoring and reviewing national advertising for truthfulness, accuracy and, in the case of CARU, consistency with its self-regulatory guidelines.

Any person or legal entity, including NAD/CARU as part of their monitoring responsibility, may submit any complaint regarding national advertising, regardless of whether it is addressed to consumers, to professionals or to business entities.

A written response is then required that provides substantiation for any advertising claims or representations challenged.

If NAD/CARU rules some or all of the advertising claims are not substantiated the advertiser must agree to modify or discontinue the advertising or choose to appeal the decision.

Further, NAD/CARU may refer the matter to an appropriate government agency, e.g., FTC, for review and possible law enforcement action.

Do I need Substantiation If Not Making Claims?

Yes. Verifiable data about products is widely requested or required, for example from buyers such as Costco, or distribution platforms such as Amazon, or insurance underwriters.

What Form of Substantiation Is Needed?

Substantiation should be developed independently (i.e., not self-generated or internal data). Further, independent data should be scientific and reflect typical or common uses of the product. Generally with NAD matters, when there is conflicting data / research, e.g., the competitor hired a testing firm to challenge claims made, the data that closest resembles the typical use case that is scientifically generated is considered superior.

Are There Exceptions on the Need for Substantiation?

Yes. Unlike above fact claims which are verifiable, fact-based statements, puffery claims are opinion-based or non-specific statements that cannot be proven, e.g., Lighter than a Cloud..., Best choice..., etc. Claims consisting of puffery or obvious exaggeration may not require substantiation.

  Product Claims: Puffery and Testing Substantiation (FTC & NAD considerations)