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The BBB’s National Advertising Division Launches Fast-Track SWIFT Process for Digital Advertising

By Laura Kim on April 6, 2020
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Last week, the Better Business Bureau’s National Advertising Division (NAD) announced a new expedited process for digital advertising challenges.  The SWIFT (Single Well-defined Issue Fast Track) Process will allow businesses to address concerns of transparency and truthfulness on an accelerated basis, with decisions rendered within twenty business days of case initiation.  The SWIFT process is currently limited to challenges involving one of three issues:  the prominence or sufficiency of disclosures, including disclosure issues in influencer marketing, native advertising, and incentivized reviews; misleading pricing and sales claims; and misleading express claims that do not require review of complex evidence or substantiation such as clinical testing or consumer perception evidence.

To facilitate this expedited process, SWIFT challenges are limited to a single issue and permit only one substantive submission per party.  The limitations on the subject matter of the challenge, together with the required timetable for decisions, mean that SWIFT challenges will be resolved on a much quicker timetable than other types of NAD challenges.  Under the standard NAD challenge procedures, both the challenger and advertiser can file two submissions, and the challenge typically takes several months to be resolved.  In addition, NAD has created a new SWIFT portal for electronic submission of filings in SWIFT proceedings.

This fast-track process will allow advertisers to quickly resolve a number of advertising disputes, perhaps most notably those involving rapidly changing digital advertisements such as social media influencer marketing and native advertising.  NAD is actively monitoring SWIFT proceedings and will adjust the process, including potentially expanding it to include other types of challenges, as the program develops.

Photo of Laura Kim Laura Kim

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her…

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her clients’ objectives.

As chair of Covington’s Advertising & Consumer Protection Investigations practice group, Laura represents corporate and individual clients in investigations before the FTC and State Attorneys General. She also provides pragmatic compliance advice on a wide range of consumer protection issues, including substantiating claims involving generative artificial intelligence, environmental benefits, and “Made in USA.” She counsels brands on emerging issues involving influencers, consumer reviews, AI-generated content, and subscription autorenewals. Laura regularly represents both challengers and advertisers before the NAD, achieving favorable outcomes in matters involving artificial intelligence, influencers, and claim substantiation.

During her twelve-year tenure at the FTC, Laura served as Assistant Director in two divisions of the Bureau of Consumer Protection, Attorney Advisor to Chairman William E. Kovacic, and Chief of Staff to Bureau Director Jessica Rich. She oversaw major rulemakings—including the Green Guides and the Telemarketing Sales Rule—and supervised dozens of investigations and enforcement actions. As Assistant Director in the Division of Enforcement, Laura also supervised compliance monitoring and enforcement proceedings for companies under federal court or Commission order.

Read more about Laura KimEmail
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  • Posted in:
    Antitrust, Competition and Trade
  • Blog:
    Inside Privacy
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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