The National Advertising Division has referred advertising claims made by Kramer Laboratories, Inc. (challenged by a competitor) to the Federal Trade Commission and Food and Drug Administration for further review after the company said it would not comply with NAD's recommendation to change the name The Original Fungi-Nail Toe & Foot Brand product.
NAD does not generally require an advertiser to change the name of a product simply because a challenger suspects that it may be misleading and absent extrinsic evidence of consumer confusion. However, NAD found that a product name change can be required if the product name itself conveys a message that is false or misleading, as here, about product performance.
Lessons from this case: even longstanding product names are not immune from scrutiny by NAD and refusal to accept NAD's recommendations will land an advertiser in front of regulators.


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