The National Advertising Division (NAD) competitor challenge process has played a critical role in the success of advertising industry self-regulation by demonstrating publicly the advertising industry’s commitment to high standards of truth, accuracy and substantiation.
The competitive challenge process increases significantly NAD’s ability to detect potentially inaccurate or unsubstantiated advertising claims, provides a more robust and informed record for the decisions that are made, enables the creation of the leading archive of precedent on advertising substantiation, and creates a public record of successful self regulation that the industry can point to with pride.
Since 2001, the NAD process has assessed filing fees to challengers to help defray the costs of the system. Currently, these fees are set at $5,000 for companies that are National Partners of the Council of Better Business Bureaus (CBBB) and are assessed on a graduated scale ($6,000 to $20,000) for challengers who are not CBBB National Partners.
Effective Jan. 1, 2014, the fee to file a challenge before NAD rose by $5,000 across the board and the tiered filing-fee structure was simplified.
To assure continued access to NAD for small and medium-sized companies, the NAD/CARU/NARB Policies and Procedures specifically provide that the filing fee can be waived or reduced on a showing of economic hardship. Consumers, of course, may file challenges free of charge.
The filing fee for CBBB National Partners is $10,000.
The filing fee for non-CBBB National Partners is:
- $15,000 for challengers with gross annual revenue of less than $1 billion.
- $25,000 for challengers with gross annual revenue of $1 billion or more.
The filing fee for all appeals before the National Advertising Review Board is $12,000.
These changes were effective Jan. 1, 2014.
The NAD competitor challenge process is detailed here.