直 Japanese PDF Font
  • Our Professionals
  • Our Work
  • Our Insights
  • Offices
  • Firm
  • Careers
Finnegan
  • Articles & Books
    • Ad Law Buzz Blog
    • At the PTAB Blog
    • European IP Blog
    • Federal Circuit IP Blog
    • INCONTESTABLE® Blog
    • Prosecution First Blog
  • Events & Webinars
  • IP Updates
  • Podcasts
    • AI + Finnegan
    • AI + Copyright
    • AI + Patent
    • AI + Privacy
    • AI + Trade Secrets
    • AI + Trademark
  • Unified Patent Court (UPC) Hub

Ad Law Buzz Blog

A New NAD Case Reveals Limitations on Disclosure Use

March 20, 2025

Authored and Edited by Jennifer E. Fried

Brands often use disclosures to ward off the specter of false advertising actions. And disclosures often do just that. But a recent NAD decision highlights that using a disclosure to spell out significant limitations is not always protective. 

In a decision reviewing advertising by DREO, NAD found fault with a series of “No. 1” claims. DREO advertised itself as the "No. 1 Fan and Heater Brand in the U.S." across a variety of platforms. Lasko Products, a competitor, begged to differ.

Both parties understood that “No 1” claims must be based on sales data. That much was uncontroversial. The issue before NAD, however, was whether DREO could define the universe of competitors when making this “No. 1” claim. DREO backed its claims with sales data showing DREO to be “No. 1” when looking only to Amazon sales. DREO even called out its approach in a disclosure: “Stackline data for Amazon U.S. Retail Sales of Space Heaters from Jan. 2023 – Dec. 2023.”

Lasko insisted that Amazon sales were not representative of the broader market. It submitted data from a market research firm that—accounting for both online and brick-and-mortar sales—show that Lasko sales outpaced DREO’s when viewing both online and brick-and-mortar together. 

NAD found that the “No. 1” claim communicated that “DREO is the overall sales leader” including both online and offline sales. It noted that “a disclosure cannot be used to contradict the main message communicated.” The main message here was about “overall” sales.

This “cannot be used to contradict” phrase appears in dozens of NAD decisions. Of course, the line between a disclosure that “contradicts” and one that “clarifies” can be murky. Here, NAD gives some direction. When making broad, market-wide claims based on sales data, it is often best to avoid using disclosures to limit the claim to certain sales channels.   

Tags

National Advertising Division (NAD)

Related Practices

Trademark and Brand Management

Advertising

Related Offices

Washington, DC

Contacts

Jennifer E. Fried
Partner
Washington, DC
+1 202 408 4166
Email

Copyright © 2025 Finnegan, Henderson, Farabow, Garrett & Dunner, LLP. 

DISCLAIMER: Although we wish to hear from you, information exchanged in this blog cannot and does not create an attorney-client relationship. Please do not post any information that you consider to be personal or confidential. If you wish for Finnegan, Henderson, Farabow, Garrett & Dunner, LLP to consider representing you, in order to establish an attorney-client relationship you must first enter a written representation agreement with Finnegan. Contact us for additional information. One of our lawyers will be happy to discuss the possibility of representation with you. Additional disclaimer information.

Related Insights

Conference

2027 ABA-IPL Section Annual Meeting – IPLSPRING

April 14-15, 2027

Arlington

Reception

2026 IPO Education Foundation Awards Dinner

December 15, 2026

Washington, DC

Conference

IP Life Sciences Forum 2026

December 13-15, 2026

Coral Gables

Conference

Atlantic Basin Conference on Chemistry 2026

December 6-9, 2026

Rio de Janeiro

Panel Discussion

2026 Advanced Patent Law Institute

December 3-4, 2026

Stanford

Webinar

Data and Market Exclusivity: An Update on China’s New Law and Comparisons to the US and Europe

November 19, 2026

Webinar

Conference

IPBC Asia 2026

November 17-19, 2026

Tokyo

Conference

Broad's 3rd Annual Biotech IP Summit

November 10, 2026

Cambridge

Conference

AIChE Annual Meeting 2026

November 8-12, 2026

Minneapolis

Due to international data regulations, we’ve updated our privacy policy. Click here to read our privacy policy in full.

  • Privacy
  • Disclaimer
  • Legal Notices
  • Fraud Alert
  • EEO Statement
  • Cookies
  • Contact Us

© 2026 Finnegan, Henderson, Farabow, Garrett & Dunner, LLP