The National Advertising Division (NAD) has issued revised Procedures governing NAD proceedings, as well as proceedings before the Children's Advertising Review Unit (CARU) and appeals before the National Advertising Review Board (NARB). A copy of the revised procedures with highlighted changes is available here.
The revisions reflect certain recommendations of an April 2015 Working Group Report of the American Bar Association's Anti-Trust Section subcommittees on Consumer Protection and Private Advertising Dispute Resolution. Norman C. Simon, Co-chair of Kramer Levin's Advertising Litigation Practice, was a member of the Working Group and an editor of the Report (a copy of which is available here).
Among the changes in the revised NAD/CARU/NARB Procedures are:
- A new rule allowing for the administrative closure of an NAD case, provided both the challenger and advertiser consent in writing.
- Limitation of the scope of a challenge to those claims identified by the challenger.
- Implementation of a 20-page limit in case filings.
- Elimination of the prohibition against new arguments in NARB appeals.
- Clarification of the standard for a challenger appeal to NARB (and addition of a review fee for seeking approval of a challenger appeal to NARB).
- Changes to the role of NAD in NARB appeals.
- Modifications to NAD and NARB compliance proceedings.
- Changes to the advertiser's statement.
- A provision that NAD will formulate a decision within 20 business days of the last submission or final in-person party meeting.
In addition, NAD will now provide for a scheduling conference at the outset of the challenge to set the timing for all filings by and meetings with the parties.