NAD Announces New Fast Track Challenge Process

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The BBB National Programs’ National Advertising Division (NAD) announced April 2, 2020, that it has launched a new fast-track challenge process called the Fast-Track SWIFT (short of Single Well-Defined Issue Fast Track) process.

Under the Fast-Track SWIFT process, decisions will be issued within 20 days from when the challenge was initiated and will likely offer a lower cost option to the traditional NAD process.

Key details of Fast-Track SWIFT are summarized below:

  • Only certain types of claims are eligible for Fast-Track SWIFT, specifically (i) influencer disclosures, (ii) native advertising disclosures, (iii) misleading pricing and sales claims, and (iv) express claims that do not require complex claim substantiation.
  • Challenges are limited to a single issue.
  • Only one substantive submission per party is permitted and submissions are limited to five typewritten pages and no more than five evidentiary exhibits.
  • Challenges must be filed online.
  • Within two business days of receipt, NAD will determine whether the challenge is appropriate for Fast-Track SWIFT. If NAD determines it is not appropriate for Fast-Track SWIFT, the challenger may transfer the challenge to the standard NAD track or close the challenge.
  • Filing fees are $5,000 more than the filing fees for traditional challenges, ranging from $15,000 if the challenger’s gross annual revenue is less than $250 million to $40,000 if the challenger’s gross annual revenue is $5 billion or more.

In addition to Fast-Track SWIFT, challengers can also still request an expedited proceeding by waiving their right to add to the record after receiving the advertiser’s substantive written response and foregoing a written reply. Unlike Fast-Track SWIFT, a challenger that elects the expedited process does not have to decide at the outset of a challenge whether it wishes to go through the full or abbreviated review process.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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