HP DECLINES TO ABIDE TO N.A.D ABOUT CARTRIDGE CAPASITY ….

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HP DECLINES TO ABIDE TO N.A.D ABOUT CARTRIDGE CAPASITY ….

 user 2010-11-10 at 8:42:52 am Views: 79
  • #23926

    http://www.narcpartners.org/DocView.aspx?DocumentID=8246&DocType=1

    HP DECLINES TO ABIDE TO N.A.D ABOUT CARTRIDGE CAPASITY CLAIMS
    NAD REFERS ADVERTISING FOR HEWLETT-PACKARD INK CARTRIDGES TO FTC FOR FURTHER REVIEW; COMPANY DECLINES TO ABIDE BY NAD DECISION
    New
    York, New York – Nov. 2, 2010 – The National Advertising Division of
    the Council of Better Business Bureaus has referred advertising from
    Hewlett-Packard Co., to the Federal Trade Commission for further review,
    after the advertiser declined to accept NAD’s findings and conclusions.
    NAD, the advertising industry’s self-regulatory forum, inquired about
    claims made by Hewlett- Packard on labels and in print, Internet and
    broadcast advertising for certain HP Inkjet printers and cartridges,
    following a challenge by the Eastman Kodak Company.

    Claims at issue included:
    “HP
    564 and HP 920 cyan, magenta and yellow ink cartridges, a three color
    ink cartridge system which is intended for use with HP inkjet printers,
    including Photosmart D5460 and
    Photosmart C6380, will yield 300
    pages.” “HP 901 integrated color ink cartridge (CMY) will yield 360
    pages and the HP 901 black ink cartridge will yield 200 pages.”  “HP 60
    integrated color ink cartridges (CMY) will yield 165 pages and the HP
    black ink cartridge will yield 200 pages.”“The #1 Ink Brand. #1
    Value”/“The #1 Ink brand is the #1 Value”/“Get More Pages with HP
    Ink”/”Up to 65% More Pages than bargain inks.”HP C4600 and HP C5400
    inkjet printers are the “world’s easiest printers to use, as chosen by
    consumers.”

    NAD also reviewed a fifteen-second “Peacock”
    commercial that stated that “HP inks give you 65% more pages than
    bargain inks.” The HP animated peacock’s plumage is significantly larger
    than the “bargain ink” animated peacock’s tail. Following its review of
    the evidence, NAD determined that the advertiser had not provided a
    sufficiently reliable basis for claims related to page yield for the
    cartridges referenced and recommended the advertiser discontinue such
    claims. Further, NAD recommended that the advertiser, on its ink
    cartridge packaging, report page-yield claims as the combination of each
    tested printer and cartridges, the minimum yield of all tested
    printers; or the range yields from all tested printers and reference the
    actual printer/cartridge performance available.

    NAD determined
    that the advertiser had provided a sufficiently reliable basis for
    claiming “The #1 Ink Brand is the #1 Value”/1 Brand, #1 Value”/“Get More
    Pages with HP Ink”/“Up to 65% More Pages than bargain inks” in its
    Internet and television advertising. The claims, in the contexts in
    which they appeared, were directed toward third-party manufacturers who
    refill ink cartridges. NAD did recommend, however, that the size of the
    peacock’s tail in the Peacock commercial be modified to better reflect
    the actual sixty-five percent difference.

    NAD determined that the
    claims “The #1 Ink Brand is the #1 Value” and “1 Brand. #1 Value” –
    which appeared as stand-alone claims in-store pallet displays and print
    circulars – conveyed the message that the advertiser’s inks are the #1
    value as compared to the entire ink cartridge market. NAD recommended
    that the advertiser discontinue the claims in a stand-alone manner in
    the context in which they appeared. Finally, NAD recommended that the
    advertiser discontinue claims that the HP C4600 and HP C5400 inkjet
    printers are the “world’s easiest printers to use, as chosen by
    consumers” because certain survey evidence was insufficiently reliable
    to support the unqualified superiority claim. Hewlett-Packard, in its
    advertiser’s statement, took issue with several of NAD’s findings and
    declined to accept NAD’s conclusions. Pursuant to NAD/CARU Procedures,
    NAD will refer the advertising at issue to the Federal Trade Commission
    for further review.NAD’s inquiry was conducted under NAD/CARU/NARB
    Procedures for the Voluntary Self-Regulation of National Advertising.
    Details of the initial inquiry, NAD’s decision, and the advertiser’s
    response will be included in the next NAD/CARU Case Report.

    About Advertising Industry Self-Regulation:
     The
    National Advertising Review Council (NARC) was formed in 1971. NARC
    establishes the policies and procedures for the National Advertising
    Division (NAD) of the Council of Better Business Bureaus,the CBBB’s
    Children’s Advertising Review Unit (CARU), the National Advertising
    Review Board (NARB) and the Electronic Retailing Self-Regulation Program
    (ERSP).The NARC Board of Directors is composed of representatives of
    the American Advertising Federation, Inc. (AAF), American Association of
    Advertising Agencies, Inc., (AAAA), the Association of National
    Advertisers, Inc. (ANA), Council of Better Business Bureaus, Inc.
    (CBBB), Direct Marketing Association (DMA), Electronic Retailing
    Association (ERA) and Interactive Advertising Bureau (IAB). Its purpose
    is to foster truth and accuracy in national advertising through
    voluntary self-regulation. NAD, CARU and ERSP are the investigative arms
    of the advertising industry’s voluntary self-regulation program. Their
    casework results from competitive challenges from other advertisers, and
    also from self-monitoring traditional and new media. NARB, the appeals
    body, is a peer group from which ad-hoc panels are selected to
    adjudicate NAD/CARU cases that are not resolved at the NAD/CARU level.
    This unique, self-regulatory system is funded entirely by the business
    community; CARU is financed by the children’s advertising industry,
    while NAD/NARC/NARB’s primary source of funding is derived from
    membership fees paid to the CBBB. ERSP’s funding is derived from
    membership in the Electronic Retailing Association. For more information
    about advertising industry self-regulation, please visit
    http://www.narcpartners.org.

    http://www.walletpop.com/blog/2010/11/05/hps-claims-about-capacity-of-its-printers-cartridges-challeng/?icid=maing|main5|6|link7|23851
    HP’s claims about capacity of its printers, cartridges, challenged
    Hewlett-Packard’s advertising claims on some of its inkjet printers and
    cartridges, including a TV commercial featuring a peacock, have prompted
    the Council of Better Business Bureaus’ National Advertising Division
    to ask the Federal Trade Commission to investigate.

    NAD, the ad industry’s self-regulatory group, looked into the issue
    after HP’s competitor, Eastman Kodak Company, challenged claims HP made
    on print, labels, the Internet and television.The ads make such claims as “The #1 Ink brand is the #1 Value” and “Get
    More Pages with HP Ink.” Others under scrutiny have to do with the
    specific number of pages a certain ink cartridge will yield. One claim
    says, “Up to 65% more pages than bargain inks.”NAD says HP did not provide a “sufficiently reliable basis” for claims
    related to the specific page yield of certain cartridges and recommended
    the company stop making the claims.NAD also reviewed one of HP’s commercials that said “HP inks give you
    65% more pages than bargain inks.” In the 15-second commercial, an
    animated peacock’s tail more than doubles in size compared to the tail
    of the bargain ink’s peacock.

    The group found that HP’s Internet and television ads about the number
    one brand and value, for example, were fine because the ads were
    directed toward third-party manufacturers that refill ink cartridges.
    However, it recommended HP adjust the size of the peacock tail in its
    commercial to better reflect the 65% difference.NAD also found HP’s claims on in-store displays about it being the top
    ink brand and number one value were misleading because they gave the
    impression the company was comparing itself to the entire ink cartridge
    market rather than other bargain ink jet manufacturers. NAD recommended
    that HP discontinue the claims in the context they’ve been presented.

    An HP company spokesperson, who asked not to be identified, e-mailed
    Consumer Ally in response to questions about the case.”HP respectfully
    disagrees with the NAD’s decision and believes the
    process used in its determination was flawed in this case,” the
    spokesperson wrote. “HP’s claims and testing methodologies continue to
    be in full and complete compliance with the ISO industry standard. HP
    provided the NAD with more than enough evidence to substantiate its
    claims.”NAD says it’s now up to the FTC to determine whether it will
    review the case and rule on it.

    http://www.walletpop.com/blog/2010/11/05/hps-claims-about-capacity-of-its-printers-cartridges-challeng/?icid=maing|main5|6|link7|23851