NAD Examines Advertiser's Pricing Claims

NAD doesn't often examine pricing claims, but a recent routine monitoring case highlights its attention to some of the most popular techniques used by marketers: countdown clocks, strike-through pricing and limited time sales. The Decision provides a useful reminder of the basic rules of sale advertising. 

The case involved advertising by Syscend, Inc. d/b/a Guardian Bikes and addressed Guardian's “40% off” savings claims, strikethrough/reference pricing, countdown timers, and limited-time sale language. And, although “NAD recognizes that aggressive price competition serves to benefit consumers,” this Decision underscores the fact that “such benefits are only realized when savings claims are accurate, include all material terms, and enable consumers to assess the value of a bargain or sale.” Consistent with the FTC’s Guides Against Deceptive Pricing, frequently cited throughout the Decision, NAD noted that it “is incumbent on advertisers not only to clearly communicate the price of