If you need an example to illustrate the work of the National Advertising Division (NAD), here is an excellent example. At the prompting of T-Mobile, the NAD reviewed some of Sprint’s advertising and recommended Sprint modify some its claims, such as “faster data speeds” and “better call quality” to clearly disclose the basis of its comparisons. The NAD recommended Sprint drop other terms, such as “all-new.”
- From the Advertising Age article, what phrases or claims did the NAD say Sprint should drop and what claims need to be substantiated?
- Why do you think the NAD made these recommendations?
- Since the NAD is an industry regulatory agency and has no legal power, why would Sprint comply with the recommendation?
- Why do you think T-Mobile asked the NAD to review Sprint’s ads?
- After reviewing this case, do you think it is good that the advertising industry has the NAD? Why or why not?