Last week, NAD launched a new, expedited process that will allow companies to challenge advertising claims made by competitor and get a decision within weeks as opposed to months.  The process, “Single Well-defined Issue Fast Track” or “SWIFT” is limited to single-issue cases, condenses and simplifies the standard NAD timeline and process, and is slightly more costly.

Fast-Track Eligible Cases

Only certain single-issue cases are accepted for the fast-track review and include, for example:

• Influencer & Incentivized Reviews Disclosures;
• Native Advertising Disclosures; and
• Pricing & Sales Claims.

Cases involving the following are not be eligible for SWIFT review:

• Complex substantiation, including reviews of clinical studies;
• Complex legal analysis where the NAD can’t rely on past NAD decisions; or
• Multiple advertising issues.

Changes to the Process

Fast-track review streamlines the standard NAD procedure and condenses the timeline—with the intention of arriving at a final NAD decision within 20 days.  Here is the timeline:

• The Challenger files a complaint, starting the clock.
• The Advertiser has four days to object to the fast-track process and/or NAD’s jurisdiction.  NAD will decide on the objection within 10 days.
• The Advertiser has 15 days to reply to the complaint (the objection does not extend this time).
• Remote (telephone or video) party meetings are held within five days of the Advertiser’s reply.
• NAD will submit a final decision to the parties 20 days after Challenger files its complaint.
• The Advertiser has five days to submit a statement for inclusion in the published decision.

The appeals timeline is also condensed.

• The Advertiser has three days to inform the NAD, NARB, and the Challenger of an  intent to appeal the decision.
• The Advertiser has eight days to submit the case file to the NAD, NARB, and the Challenger (with the appeal limited to 15 double-spaced pages).
• The Challenger has two days to object to the appeal (no cross-appeals allowed).
• NARB Chair has absolute discretion to choose which types of members (public, advertising agency, and/or advertiser) will comprise the review panel.
• NARB will issue a decision three days after the review panel hearing.

Fast-Track Review Cost

The fast-track review cost is $5,000 higher than the standard NAD review cost.  For BBB National Partners, the filing cost is $30,000.  For Challengers with gross annual revenue less than $250 million, the cost is $15,000.  For Challengers with gross annual revenue less than $5 billion, the cost is $35,000.  For Challengers with gross annual revenue more than $5 billion, the cost is $40,000.  If the NAD determines a case is not eligible for fast-track review, it will only retain a $5,000 processing fee and the Challenger has the option of filing a standard NAD challenge.

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