Bath & Body Works, LLC, challenged a series of advertising claims made by Goose Creek LLC, a candle manufacturer, before the BBB National Programs, National Advertising Division (NAD). When making performance, origin, ingredient, and endorsement claims, advertisers must properly substantiate them. How might properly designed consumer research substantiate claims before advertisers make marketing investments?
The Challenge
Goose Creek marketed its Bath, Body & Home candles with claims suggesting that its products avoid harmful chemicals, deliver stronger and longer-lasting fragrance than in-store brands, are made in the USA, and are endorsed by a candle vlogger, @TheCandleChannel. The company’s advertising also featured actors portraying consumers and included video testimonials and user reviews on its website.
Bath & Body Works challenged aspects of these representations, including:
The Bath, Body & Home tagline
- The nature of Goose Creek’s relationship with actors appearing in advertisements
- “Made in the USA” origin claims
- Influencer marketing disclosures
- Claims regarding candle ingredients
- The use and presentation of incentivized consumer reviews
BBB National Program NAD Findings
Upon review, the NAD recommended that Goose Creek discontinue specific claims, modify others, and implement clearer influencer disclosures. Specifically, NAD determined that Goose Creek should:
Discontinue claims regarding ingredients purportedly found in competitors’ products.
- Discontinue claims that Goose Creek candles provide longer-lasting or stronger fragrances than competing brands.
- Modify its “Made in the USA” claims for greater transparency
- Modify disclosures in advertisements featuring actors portraying consumers.
- Require @TheCandleChannel to clearly disclose its material connection to the company
- Modify consumer reviews to disclose review incentives
The findings show that the NAD focuses on how consumers reasonably interpret advertising messages, not what advertisers intend to communicate.
Claim Substantiation to Prevent NAD Challenges
Whether it is before NAD, the Federal Trade Commission, or litigation, advertising claim substantiation capable of withstanding close regulatory scrutiny relies on properly conducted consumer research. Surveys may be conducted before market launch or after, to assess whether consumer perception aligns with claims.
Claims regarding longer-lasting or stronger scent may be evaluated through properly conducted sensory research, comparing the candles’ performance against competitors. “Made in the USA” claims, or other origin claims, may be substantiated through consumer perception surveys to measure how consumers interpret origin statements.
Front-End Litigation Survey Support
For organizations launching new products or evaluating existing advertising claims, early engagement with experienced research and litigation support professionals can help ensure that claims are defensible before they are challenged.
To explore how consumer research supports legal and regulatory strategies, explore the IMS Legal Strategies suite of expertise.
