New York, NY – August 29, 2024 – BBB National Programs’ National Advertising Division referred HiSmile PTY to the Federal Trade Commission (FTC) and other regulatory authorities for review after HiSmile declined to provide an advertiser statement confirming it will comply with all of NAD’s recommendations.
Competitor Oral Essentials, Inc. challenged certain HiSmile claims for its tooth concealer products (V34 Colour Corrector Serum and Glostik) and teeth whitening products containing PAP (PAP+ Whitening Strips, PAP+ Whitening Pen, PAP+Whitening Toothpaste and VIO 405 Refills or “Tooth Whiteners”).
The challenged claims appeared on HiSmile’s website, social media, and Amazon listings.
Instant Claims
The National Advertising Division (NAD) determined that the studies and research submitted by HiSmile do not provide a reasonable basis for claims that HiSmile tooth concealers provide “instant brightening,” “immediately brighten(s)” teeth, and the description of Glostik as an “Instant Whitening Wand.” Therefore, NAD recommended that these claims be discontinued.
Further, NAD recommended that HiSmile discontinue claims of “clinically proven instant whitening results,” “instant brightening,” “immediately brightens,” and “instantly remove yellow teeth stains” for its tooth whitening products as the evidence was not a good fit to support the claims.
Sensitivity Claims
In the absence of support on the impact of the tooth whiteners on “sensitivity,” NAD determined HiSmile’s claims of “no tooth sensitivity,” “sensitivity-free whitening,” “strips away the stains without any sensitivity,” and “no gum irritation” were unsupported and recommended they be discontinued.
Product Demonstrations
Oral Essentials also challenged certain product demonstrations and endorsements of HiSmile’s products that appeared on social media, including experiments conducted on various foods such as an egg, a banana, a lemon, or an ear of corn.
NAD concluded that Hismile’s product demonstrations can be reasonably understood as a visual demonstration of the whitening power of its tooth concealer. NAD noted that when a product demonstration is presented as visual proof of how the product will perform, the demonstration must be presented accurately and any material conditions or limitations should be clearly disclosed.
Accordingly, NAD recommended that HiSmile discontinue the use of its egg test as a product demonstration, or modify it to:
- Avoid equating the egg and staining elements to stains on teeth; and
- Make clear the material aspects of the test including the dipping time and the staining factors used.
As to HiSmile’s product demonstrations on other items such as a banana, NAD recommended they be discontinued or modified to:
- Avoid conveying the message that the demonstrations depict the whitening power of HiSmile’s products; and
- Make clear that demonstrations on objects that are not similar to teeth only demonstrate the mechanism of administration.
Material Connection Disclosures
In addition, Oral Essentials challenged product demonstrations and endorsements appearing on social media where it maintained the material connection between the endorser and HiSmile was not fully disclosed.
While HiSmile committed to using standard disclosures provided by social media platforms, FTC guidance cautions marketers against relying on the platform-provided disclosure if it is not clear and conspicuous. NAD has previously found that an “includes paid promotion” platform-provided disclosure is not clear and conspicuous.
Accordingly, NAD recommended that HiSmile modify any video endorsement to include a material connection disclosure that is clear and conspicuous in audio and video, keeping in mind that clear and conspicuous means unavoidable or difficult to miss.
During the proceeding, HiSmile permanently discontinued certain claims for its PAP+ Whitening Pen, PAP+ Whitening Strips, and tooth concealers. Therefore, NAD did not review these claims on their merits and will treat the claims, for compliance purposes, as though NAD recommended they be discontinued.
HiSmile did not provide an advertiser statement confirming it will comply with all of NAD’s recommendations. Per NAD/NARB Procedures, NAD has referred this matter to the FTC and other regulatory authorities for review and possible enforcement action. NAD will also refer this matter to platforms on which HiSmile’s advertising appeared.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. The National Advertising Division reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact Information
Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
National Advertising Division Refers Comparative Efficacy Claims for HiSmile Toothbrushes vs. Oral-B to Regulatory Authorities for Further Review
New York, NY – August 29, 2024 – BBB National Programs’ National Advertising Division has referred advertising claims made by HiSmile PTY for its toothbrushes to the Federal Trade Commission (FTC) and other regulatory authorities for review after HiSmile declined to participate in the industry self-regulation process.
The Procter & Gamble Company (P&G), manufacturer of competitor Oral-B brand power toothbrushes, challenged claims made by HiSmile in two videos posted by the company on TikTok. In the videos, HiSmile made unsupported comparative efficacy claims and claims that falsely disparaged its Oral-B power toothbrushes including:
- “[other brushes have] 1 million useless extras that you don’t need”
- “You’re not going to hear about rotations on [our] brush head,”
- “[HiSmile] is here to replace your dodgy electric toothbrush”
- “You don’t need the features from the big boy brands…selling you like a used car salesman for features you don’t need”
While HiSmile advised the National Advertising Division (NAD) that one of the TikTok videos had been taken down, the other video remains on the platform and HiSmile has not represented that the claims at issue had been permanently discontinued.
As HiSmile decided not to participate in the NAD self-regulatory process concerning these claims, NAD will refer the matter to the FTC and other regulatory authorities for review and possible enforcement action.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes. NAD will also refer this matter to platforms on which HiSmile’s advertising appeared.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact Information
Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
National Advertising Division Finds Certain Claims for Verizon Home Internet Supported; Recommends Verizon Modify or Discontinue Others
New York, NY – August 28, 2024 – In a challenge brought by Charter Communications, Inc., BBB National Programs’ National Advertising Division determined that Verizon Communications Inc. provided a reasonable basis for certain claims for its Verizon Home Internet but recommended that it discontinue or modify others.
Three primary services are included under Verizon Home Internet: Fios Home (using fiber-to-the-home), 5G Home (using mid-band and high-band 5G wireless), and LTE Home (using 4G LTE wireless). Fios Home is a wired service and 5G Home and LTE Home are fixed wireless access (FWA) internet services that connect to homes through Verizon’s cellular network.
5G Claims
Verizon branded parts of its FWA service “5G Home” and “5G Home Plus.” The National Advertising Division (NAD) considered the message reasonably conveyed by claims using the term “5G”:
- “5G” Home Internet
- “5G-fast” speeds
- “Game, stream & connect with the speed of 5G.”
- “[B]inge, game, and work at the speed of 5G.”
NAD found that Verizon’s advertisements do not perpetuate or reinforce any misconception that 5G refers to 5 Gbps. Therefore, NAD determined that Verizon’s 5G claims were not misleading because the term “5G” describes the service accurately– home internet connected through 5G mobile technology.
Fast and Reliable Claims
Applying standards used for residential broadband internet, NAD determined that Verizon provided a reasonable basis that its services were “reliable” and that the following claims are substantiated:
- Verizon Home Internet is “reliable” home internet.
- Consumers will receive uninterrupted service with Verizon’s FWA service offerings.
- Consumers will receive consistent speeds throughout the day with Verizon’s FWA service offerings.
However, NAD concluded that Verizon failed to provide a reasonable basis that Verizon Home Internet, which includes 5G Home and LTE, is “fast” in a context that equates those services with its broadband internet services.
Therefore, NAD recommended that Verizon modify the following “fast” claims to clearly and conspicuously disclose the service (Fios Home) for which the claim is supported:
- Verizon Home Internet is “fast” home internet.
- Verizon Home Internet is “fast . . . home internet so you can binge, game and work at the speed you need.”
- Verizon’s FWA internet offerings provide internet access in the same manner as the wired internet services offered by Charter and other similar wireline ISPs.
Alternatively, Verizon may clearly and conspicuously disclose that its 5G Home and LTE Home services of its Verizon Home Internet provide internet access through a mobile wireless or cellular network and that speeds may vary due to factors affecting networks.
Stream Claim
Verizon’s website claims “Verizon 5G Home is fast, reliable home internet so you can game, stream and connect the way you want.” NAD determined that the claim reasonably conveys the message that there are no limitations on picture quality on what consumers can stream with Verizon’s FWA internet option. However, the inability to stream in 4K is material information that directly contradicts the claim of being able to stream the way you want.
Accordingly, NAD recommended that Verizon modify the claim by clearly and conspicuously disclosing that certain limitations on playback resolution may apply depending on the tier of service.
No Data Limits and Data Caps Claim
Verizon’s terms of service give it the right to limit the speeds of its highest data-using FWA customers. While Verizon characterizes data limitation ability as an abuse-prevention mechanism, it is nevertheless a data limitation. As a result, NAD found that the unqualified “no data limits” or “data caps” claims for Verizon’s 5G Home Internet and LTE Home Internet plans are unsupported.
Therefore, NAD recommended that Verizon discontinue its “no data limits” and “data caps” claims or modify the claims to disclose its data limitation policy.
Antenna Claims
NAD concluded that Verizon’s claim “there’s a 5G antenna somewhere in your neighborhood, or maybe even a few” and the implied message that consumers who subscribe to Verizon’s 5G Home Internet will connect to an antenna in their neighborhood, as directed to the target audience, are truthful and supported.
Further, NAD determined that the claim does not reasonably convey the message that subscribers will have multiple antenna options to connect to, as it states “maybe” and makes clear that multiple antennae is a possibility and not a promise.
Underground Claims
During the proceeding, Verizon permanently modified the claim that Verizon 5G Home Internet “actually works . . . ten feet underground” to include the language “And don’t ask me how, but the gang hacked it to make sure it worked while I’m underground.” Afterwards, the words “And because of our hack” was inserted before the statement “It actually works . . .”
NAD found that the language about a “hack” reduces the likelihood of consumer confusion and concluded that Verizon’s claim that Verizon 5G Home Internet actually works ten feet underground was not false or misleading in the context of its video.
Choose a Plan Claim
NAD concluded that the claims “choose a plan that fits [their] needs so [they] can get the speed and features that are right for [them]” and “binge, game and work at the speed you need” are not misleading.
NAD noted that reasonable consumers understand that although home internet providers offer a variety of plans, they are unlikely to offer a plan for every customer and that service availability varies.
Limited Availability
Verizon geo-targets Verizon Home Internet advertisements to areas in which the service is available, and any advertisements that are not geo-targeted contain a disclosure that availability varies or that not all products may be available. Therefore, NAD concluded that no modifications to claims about the availability of Verizon’s 5G Home Internet service were necessary.
During the proceeding, Verizon permanently discontinued a number of claims and modified one claim. Therefore, NAD did not review these claims on their merits and will treat the claims, for compliance purposes, as though NAD recommended they be discontinued or modified.
In its advertiser statement, Verizon stated that it “will comply with NAD’s decision” and take NAD’s recommendations into consideration in future advertising because it is committed to industry self-regulation.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact Information
Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
Latest Edition of Enterval Private Student Loan Report Highlights Steady Private Student Loan Repayment Trends
August 22, 2024 – Enterval Analytics, LLC, a leading student loan analytics company, today released the 22nd edition of its semi-annual Private Student Loan Report. The latest Report offers detailed data and analytics on the US private student in-school lending market, highlighting current private student loan performance, and comparing it to pre-pandemic 3-year averages. The Report underscores that a majority of borrowers continue to responsibly manage their private student loans.
At the end of Q1 2024, early-stage delinquency remained steady at 3.02%, while late-stage delinquencies were 1.61%. Annualized gross charge-offs were 2.56%. The 3-year average for the pre-pandemic timeframe of 2017 to 2019 were 2.57%, 1.57%, and 2.04%, respectively. At the end of Q1 2024, 75.91% of private student loan borrowers were in repayment, which is slightly more than the three-year pre-pandemic average of 75.46%.
“Private student loan borrowers continue to demonstrate responsible repayment management,” explains John Falb, CEO of Enterval Analytics. “The pandemic introduced unique private student loan origination and repayment trends, but the data confirms market performance is normalizing.”
The Report represents data contributed by thirteen private lenders, who collectively account for over 70% of the active in-school private student loan lender market. Report contributors originated $8.92B in private student loans during the first three quarters of academic year 2023/24. In addition to being fully underwritten to assess creditworthiness and ability to repay, private student loans are school certified with 90.40% of loans being cosigned.
Based on the latest available federal student loan data, approximately 92.37% or $1.6 trillion of the loans today are made by the federal government; the remaining 7.61% or $133.43 billion of the student loan market as of Q3 2024 are private student loans. Undergraduate loans account for 90.70% of the outstanding private student loan portfolio.
The full Private Student Loan Report is available for download at https://www.enterval.com/#reports.
The bi-annual Report includes continuous contributions from the five largest student loan lenders and holders: Citizens Bank, N.A., College Ave, Navient, PNC Bank, N.A., and Sallie Mae Bank. In addition, the report includes data from eight other student lender contributors.
About Enterval Analytics
Enterval Analytics was formed to provide industry leading research, tools, and insights for the private student loan market. In 2021, Enterval acquired certain reporting assets of MeasureOne and has assumed the lead in creating this report.
Enterval has a dedicated team of seasoned professionals, with specialized experience in data analysis, finance, student loan portfolio management, higher education policy, public and government relations—Enterval is uniquely positioned to deliver reporting and software tool solutions focused on the higher education space. For more information about Enterval, visit www.enterval.com.
Contact Information
Name: Elaine Rubin
Email: erubin@enterval.com
Job Title: Director of Corporate Communications
In National Advertising Division Fast-Track SWIFT Case, SharkNinja Voluntarily Modifies Disclosure for “500x Less Dust Exposure” Claim
New York, NY – August 21, 2024 – The BBB National Programs National Advertising Division has closed a Fast-Track SWIFT challenge initiated by Dyson, Inc. regarding advertising by SharkNinja Operating, LLC for its Shark Clean & Empty Cordless Stick Vacuum & Auto-Empty System.
Fast-Track SWIFT is an expedited process designed for single-issue advertising cases brought to the National Advertising Division (NAD).
Dyson challenged the adequacy of the disclosure used in connection with SharkNinja’s claim that its Clean & Empty Vacuum offers “500x less dust exposure* (*Based on third-party plume testing while emptying vs. manual empty),” in digital advertising, third-party retailer websites, on SharkNinja’s website, and product packaging.
In response to Dyson’s SWIFT challenge, SharkNinja informed NAD that it has permanently discontinued use of the disclosure identified by Dyson and that all future claims of comparative dust exposure will include a modified disclosure clearly stating the basis of comparison, which is a comparison to the Shark Navigator.
Therefore, NAD did not review the challenge on the merits and will treat the advertising, for compliance purposes, as though NAD recommended it be discontinued.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact:
Jennie Rosenberg
Media Relations
BBB National Programs
press@bbbnp.org
National Advertising Division Recommends Happy Mammoth Discontinue Certain Health-Related Claims for Hormone Harmony Dietary Supplement
New York, NY – August 20, 2024 –BBB National Programs’ National Advertising Division recommended, as part of its routine monitoring program, that Happy Mammoth discontinue certain health-related claims for its Hormone Harmony dietary supplement including:
- “Relieves symptoms of Menopause”
- “Relieves hot flashes”
- “Improve sleep quality”
- “Reduces bloating and gas”
Hormone Harmony contains a proprietary combination of ingredients, including fennel, chaste berry, ashwagandha, and chamomile, to ease menopausal discomfort.
The National Advertising Division (NAD) determined that Happy Mammoth did not have a reasonable basis for the unqualified claims about the challenged benefits as there was no testing on the product itself. However, Happy Mammoth indicated a willingness to qualify the challenged claims to specify the efficacy of the ingredients in delivering the challenged benefits. Therefore, NAD examined whether the evidence could support qualified claims.
NAD determined that the studies submitted by Happy Mammoth had limitations that rendered them insufficient to support the challenged claims as well as the qualified claims and, therefore, recommended the claims be discontinued.
NAD noted that nothing in its decision would prevent Happy Mammoth from:
- Making claims regarding the ability of fennel and chaste berry to positively affect menopausal symptoms that are supported by the limited findings of the research in evidence.
- Making supported claims that describe the traditional or historic use of ashwagandha to support sleep or are carefully qualified to avoid any misleading implication about the product’s efficacy or health benefits.
- Describing the traditional or historic use of chamomile in reducing bloating and gas.
During the proceeding, Happy Mammoth agreed to voluntarily discontinue certain claims including “Relieves mood swings and boosts energy” and “Reduces . . . fluid retention.”
Therefore, NAD did not review the claims on their merits and will treat the claims, for compliance purposes, as though NAD recommended they be discontinued and Happy Mammoth agreed to comply.
In its advertiser statement, Happy Mammoth stated that it agrees to comply with NAD’s recommendations but is disappointed with some of NAD’s critiques.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. The National Advertising Division reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact Information
Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
National Advertising Division Recommends Datarails Disclose Material Connection to The Finance Weekly Website for Endorsement, Rankings, and Reviews
New York, NY – August 16, 2024 – In a Fast-Track SWIFT challenge, BBB National Programs’ National Advertising Division recommended that Datarails, Inc. clearly and conspicuously disclose its material connection to The Finance Weekly website where endorsement, rankings, and reviews appear.
Cube Planning, Inc., a competitor in the Financial Planning and Analysis (FP&A) software solutions market, challenged Datarails advertising on The Finance Weekly website.
Fast-Track SWIFT is an expedited process designed for single-issue advertising cases brought to the National Advertising Division (NAD). At issue for NAD was whether the affiliation between The Finance Weekly and Datarails is adequately disclosed.
NAD determined that there was a material connection between Datarails and The Finance Weekly website and that connection was not clearly and conspicuously disclosed. NAD noted that Datarails advertises throughout the website (and appears to be the only advertiser on the website), however, portions of the website that rank services do not disclose this material connection.
To ensure that Datarails advertising does not mislead consumers, NAD recommended that Datarails clearly and conspicuously disclose its material connection to The Finance Weekly website where endorsement, rankings, and reviews appear.
Datarails denied knowledge of the rating and ranking criteria of The Finance Weekly. NAD noted that in using an expert endorsement, Datarails, like any advertiser, has an obligation to ensure the endorsement is truthful.
Therefore, NAD recommended that Datarails discontinue using expert endorsements that do not:
- Have the correct experience to review the service;
- Review the product using that expertise to examine competing products or services; and
- Conclude the product or services are superior to other products or services with respect to the features reviewed.
In its advertiser statement, Datarails stated that it “intends to comply” with NAD’s recommendations.
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. The National Advertising Division reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact Information
Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
National Advertising Division Finds Certain Claims for Online Corporate Formation Services Supported; Recommends LegalZoom Modify or Discontinue Others
New York, NY – August 15, 2024 – In a challenge brought by ZenBusiness, Inc., BBB National Programs’ National Advertising Division determined that LegalZoom, Inc. provided a reasonable basis for certain claims regarding its online corporate formation services but recommended that it discontinue or modify others.
Superiority Claims
ZenBusiness challenged several iterations of social media ad and sponsored search ad claims stating that LegalZoom is the “#1 Choice” for online small business formation and is “#1 Rated/Voted” by small businesses.
The National Advertising Division (NAD) determined that the three surveys relied on by LegalZoom as evidence were not a good fit for supporting the claims and recommended they be discontinued. NAD noted that its decision does not prevent LegalZoom from relying on the surveys for different, supported claims.
Best LLC Claim
NAD found that LegalZoom’s “Best LLC Service” claim, which appeared in a sponsored search ad, is puffery and does not require support. NAD noted that, in context, the claim is used as a vague statement of corporate pride without conveying a message that LegalZoom has been measured to be the “best” in a quantified, objectifiable way.
Price Savings Claims
LegalZoom’s website features a direct comparison of its business formation services to those offered by ZenBusiness. NAD found the claims that ZenBusiness is “up to 20% more expensive than LegalZoom” and that customers who use LegalZoom’s business formation services “can save up to $39” compared to ZenBusiness were substantiated. However, NAD recommended that LegalZoom modify its comparison chart to accurately indicate that ZenBusiness offers a website builder free for one month with its starter package.
NAD also found that LegalZoom’s proposed modification to its comparison chart to clearly and conspicuously identify both companies as offering compliance services (included by ZenBusiness for the first year) would not mislead consumers about the compliance offerings of each competitor.
Disclosure of Affiliate Relationship
LegalZoom’s website features a box with the language “as seen in” followed by the logos of Forbes, Mashable, The New York Times, CNBC, and The Today Show. NAD recommended that if LegalZoom has a material connection, including an affiliate relationship with the publications and media outlets featured in its “as seen in” advertisement, that material connection should be clearly and conspicuously disclosed on LegalZoom’s website.
On another part of its website, LegalZoom touts its relationship with its business partners stating in large black font “Build a successful business with help from our partners” followed by the statement “Whether you’re just starting out or looking to scale your business, our partners have solutions and special offers.” Below the text, six partner logos are featured, which NAD found clearly and conspicuously discloses the commercial relationship between LegalZoom and its partners.
Consumer Purchase Flows
NAD reviewed two challenged portions of LegalZoom’s LLC purchase flow and recommended that LegalZoom:
- Modify the registered agent purchase flow to clearly and conspicuously disclose the options available to consumers; and
- Modify the order review page to clearly and conspicuously reflect the pricing of the add-on features, both in their line-item appearance and in the total price at the end of the page.
In its advertiser statement, LegalZoom stated that it “will comply with NAD’s decision.” LegalZoom further stated that although it “disagrees with some of NAD’s conclusions, as a strong supporter of industry self-regulation LegalZoom will take NAD’s recommendations into account as it revises its materials.”
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact Information
Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
National Advertising Division Recommends ASO Discontinue “up to 2x Faster Healing” Claims for Hydrocolloid Gel Bandages
New York, NY – August 13, 2024 – In a challenge brought by Johnson & Johnson Consumer Inc. (JJCI), BBB National Programs’ National Advertising Division recommended that ASO LLC discontinue its “2x faster healing” claims for its hydrocolloid bandages.
Hydrocolloid bandages are moist wound dressings that turn into a gel after absorbing fluid. ASO’s bandages are sold under their brand names, All-Health and Care Science, as well as its private label customers’ brands sold in pharmacies.
The “up to 2x faster healing” claims appeared on several media platforms, on the bandage packaging, and retailer websites. The claim appeared adjacent to ASO’s “SMART-HEAL®” trademark with the disclosure that “*Hydrocolloids have been shown to heal minor cuts, scrapes, abrasions, lacerations, blisters, and scalds up to 2x faster than a simple dry bandage. Journal of Athletic Training 2007; 42(3):422-424.”
The National Advertising Division (NAD) concluded that some consumers looking at ASO’s advertising might take away the message that the “up to 2x faster healing” claim is a comparison between hydrocolloid bandages and traditional dry bandages. Another message NAD determined to be reasonably conveyed is that ASO’s product, or its Smart-Heal Technology, as opposed to hydrocolloids generally, promotes up to 2x faster healing.
NAD found that while ASO’s evidence suggests hydrocolloids may speed the wound healing process, it does not reasonably support qualified claims that hydrocolloids have been shown to heal up to 2x faster than dry bandages. As a result, and because ASO provided no evidence of its own bandages’ relative healing times, NAD determined that the evidence also does not support claims that ASO’s product or its Smart-Heal Technology promotes up to 2x faster healing.
For these reasons, NAD recommended that ASO discontinue its “up to 2x faster healing” claims.
In addition, JJCI argued that ASO’s “up to 2x faster” claims falsely imply that ASO’s hydrocolloid bandages have premarket approval from the FDA as Class III medical devices. However, NAD did not find that any of the challenged advertising or claims reasonably conveyed such a message.
In its advertiser statement, ASO stated that it “agrees to comply with NAD’s recommendation” although it believes the up to 2x faster healing claim “to be fully supported” by the studies showing that hydrocolloid bandages offer improved healing times and “disagrees with this aspect of NAD’s decision.”
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. This press release shall not be used for advertising or promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. The National Advertising Division reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.
Contact: Jennie Rosenberg,
Media Relations, BBB National Programs
press@bbbnp.org
Contact Information
Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
LexisNexis Announces New Protégé Legal AI Assistant as Legal Industry Leads Next Phase in Generative AI Innovation
Third-generation Lexis+ AI features highly personalized Protégé Legal AI Assistant, driven by customer feedback as part of US Commercial Preview program
NEW YORK – LexisNexis® Legal & Professional, a leading global provider of AI-powered analytics and decision tools, today announced the US Commercial Preview program for LexisNexis Protégé™ Legal AI Assistant on the third generation of Lexis+ AI®. Protégé™ marks a substantial leap forward in personalized generative AI that will transform legal work, with personalization choices controlled by the customer. Customer-driven innovation is core to the company’s product development, and LexisNexis is taking a customer-first approach to the generative AI technology journey as well. LexisNexis is teaming up with leading Am Law 100 firms as part of the US Commercial Preview program to tap into their continuous feedback.
Protégé builds on Lexis+ AI technology and market leadership. Lexis+ AI is commercially available in the US, US law schools, Canada, the UK, France, and Australia. Lexis+ AI is the only major legal generative AI solution used in law school curricula today, available in 100 percent of US law schools. Near term, Lexis+ AI international market expansion plans include Austria, Hong Kong, New Zealand, Malaysia, and Singapore. Lexis+ AI users worldwide have generated millions of prompts and conversations, forming one of the world’s largest sets of user experience data in legal generative AI.
“Our customers are at the forefront of co-developing legal generative AI technology with us by testing, providing feedback, and adopting Lexis+ AI,” said Sean Fitzpatrick, CEO of LexisNexis North America, UK and Ireland. “Customers guide our vision. They are ready to progress from a Legal AI Assistant built for everyone, to the next phase – a Legal AI Assistant uniquely customized and tailored for each individual legal professional.”
LexisNexis Protégé is a private, trusted Legal AI Assistant, unique to each legal professional. Personalization choices are controlled by the user or their organization – creating a set of choices to optimize the user’s generative AI experience. Protégé will support legal professionals in making informed decisions faster, generating outstanding work quality, and freeing up time to focus on efforts that drive economic value for their clients and organizations:
- Protégé is dedicated to understanding each user’s legal work needs, continuously learning and improving, and anticipating new ways to support them. Last month, LexisNexis acquired Henchman, a Belgium-based company, to catalyze its shift to personalized generative AI. Henchman’s advanced technology provides deeper access to law firms’ internal work product. Its technology enriches data from law firms’ Document Management Systems (DMS), enabling users to quickly mine internal repositories and extract and interact with key insights. Integrating Henchman® DMS technology with trusted LexisNexis® content using its proprietary Retrieval Augmented Generation (RAG) 2.0 platform improves answer quality and accelerates personalized generative AI.
- Protégé personalization capabilities fuel a wide set of new AI-enabled tasks. Protégé knows specifics about each user like workflow preferences, daily task requirements, firm standards, teamwork and communication styles, legal areas of specialization, and past work product. It proactively suggests subscribed LexisNexis products to provide insights and analytics. Protégé will become increasingly versatile, flexible, and useful as new technologies are incorporated like voice and multi-media processing.
- Protégé is ubiquitous across the LexisNexis AI-powered ecosystem––from the company’s portfolio of products to Microsoft 365 for Microsoft Word, Outlook, Teams, and Copilot. Protégé seamlessly works alongside the user, whether in a LexisNexis solution or third-party application like Microsoft, to reduce application switching time, accelerate efficiency, and meet the user where they work.
- The Protégé core framework integrates safety, security, and Privacy by Design principles. This ensures that interactions are backed by state-of-the-art security and privacy technology to keep data and user information highly secure.
In Q3 and Q4 2024, the Protégé personalization journey begins for users with functionality that:
- Knows my work and leverages my own work product – provides searchable internal firm data combined with AI for deep insights, enables batch upload capabilities and performs AI tasks, and analyzes my documents and provides contextual recommendations.
- Knows my workflow and meets me where I work – integrates across LexisNexis solutions and Microsoft 365 and provides Shepard’s® insights within conversations.
- Knows my tasks and supports a wide range of new use cases – supports daily task organization, client meeting deliverables, and deposition preparation. Protégé builds timelines, conducts AI code compare, initiates statutory horizon scanning, enables document upload and analysis, drafts full documents, and conducts intelligent legal research.
- Knows me and supports complex conversations – provides personalized responses based on user profiles and past behaviors, engages in sophisticated dialogue with clarifying questions and recommendations, and gives responses informed by subscribed LexisNexis products.
- Knows how to harness innovative, new technology to uniquely support me (2025) – includes answering prompts by voice, multimedia processing across text, image, video and audio, and news horizon scanning to identify breaking opportunities and risks.
For more information on LexisNexis Protégé Legal AI Assistant, visit www.lexisnexis.com/protege. For more information on Lexis+ AI, visit www.lexisnexis.com/ai.
About LexisNexis AI Development
LexisNexis is responsibly developing legal AI solutions with human oversight. LexisNexis, part of RELX, follows the RELX Responsible AI Principles, considering the real-world impact of its solutions on people and taking action to prevent the creation or reinforcement of unfair bias. LexisNexis deploys ethical, powerful generative AI solutions with a flexible, multi-model approach that prioritizes using the best model for each legal use case and enables the company to investigate and deploy new models with unmatched speed.
Using the LexisNexis advanced proprietary Retrieval Augmented Generation (RAG) 2.0 platform integrated with Shepard’s® Knowledge Graph, Lexis+ AI responses are grounded in comprehensive, exclusive legal content with case law relationship information to deliver validated citation references, ensuring high-quality and authoritative answers. Lexis+ AI delivers trusted results with state-of-the-art encryption and privacy technology to keep data secure. Uploaded documents are purged or retained as dictated by the customer, and customers can easily manage or delete their prompt conversation history. Lexis+ AI is continually improving with hundreds of thousands of rated answer samples by LexisNexis legal subject matter experts used for model tuning. LexisNexis employs over 2,000 technologists, data scientists, and subject matter experts to develop, test, and validate its solutions.
About LexisNexis Legal & Professional
LexisNexis® Legal & Professional provides legal, regulatory, and business information and analytics that help customers increase their productivity, improve decision-making, achieve better outcomes, and advance the rule of law around the world. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis® and Nexis® services. LexisNexis Legal & Professional, which serves customers in more than 150 countries with 11,800 employees worldwide, is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers.
Media Contact
Dana Greenstein
Director of Communications, North America & UK
LexisNexis Legal & Professional
212-448-2163
dana.greenstein@lexisnexis.com