In recent years, more companies have been willing to take public
positions on social issues and to promote certain causes. Different
types of promotions raise different legal issues. For example, if a
company advertises that a purchase will lead to a donation to a
charity, that could trigger requirements under commercial
co-venture laws. (Listen to
this podcast for more details.) Other types of promotions
– such as simply announcing a charitable donation –
trigger fewer requirements.
Whatever path a company takes, though, it must make sure that it
actually does what it says. Although state regulators are usually
the ones who pay most attention to these campaigns to ensure that
companies comply with the law, two decisions issued by NAD this
week signal that the self-regulatory body will also be monitoring
these types of campaigns and holding companies accountable.
