In 2016, the National Advertising Division referred two cases to the Federal Trade Commission. The first case involved claims by Max Synapse LLC that its dietary supplement supports short-term memory, drastically increases long-term memory, increases concentration, and increases memory and recall. The second case involved claims by Super Flora Probiotic, LLC that its dietary supplement ends frequent bathroom emergencies, stops urgent diarrhea and digestive problems, promotes weight loss, and boosts the immune system.
The NAD referred these cases to the FTC after the companies did not respond to NAD's inquires or otherwise participate in NAD's self-regulatory process. In a February 15th public letter, the FTC just reported that it contacted the advertisers and got them to agree to participate in the NAD process. We'll now have to wait to see what NAD decides.
Although participation on the NAD self-regulatory process is voluntary, advertisers should be aware that NAD has strong support from the FTC. When advertisers refuse to voluntarily participate, and the FTC then gets involved, advertisers often decide that they'd rather deal with NAD than with the FTC.
The FTC fully supports the NAD's self-regulatory process, and we sincerely appreciate these referrals and the opportunity to continue to assist in supporting NAD.