The National Advertising Division (NAD) has referred advertising claims made by cellulose insulation manufacturer GreenFiber, LLC, to the Federal Trade Commission (FTC) for review after the company declined to participate in a self-regulatory proceeding stemming from a competitor’s challenges. Johns Manville apparently argued that GreenFiber’s product name, the “pervasive green imagery” used in its advertising and the “environmentally-friendly” claims listed on its product packaging, point-of-sale material and Website, conveyed a message of “general environmental benefit that is misleading to consumers.”
Arguing that it “had already committed to modifying seven of the nine claims” challenged, GreenFiber declined to participate in a review of its advertising claims, leading NAD to refer the matter to FTC for action. NAD is the investigative unit of the advertising industry’s system of self regulation, administered by the Council of Better Business Bureaus. See Advertising Self-Regulatory Council Press Release, August 20, 2013.