The Council of Better Business Bureaus revised the Code of Advertising used by its local chapters for the first time since the 1970s, Ad Age reported on February 12, 2015. For the first time, the code adopts the Federal Trade Commission’s standard for “Made in USA” claims.
What changed for Made in USA claims
Under the revised code, a product advertised as “Made in the USA” must be “all or virtually all” made in the USA, following FTC guidelines. The code also covers “Product of Canada” claims, since it was revised to apply to the BBB’s six Canadian chapters for the first time.
Other new sections cover social media endorsements, environmental claims based on the FTC Green Guides, and “negative option” plans that renew automatically unless consumers cancel.
Why it matters
The code governs advertising disputes handled by 112 BBB chapters in the USA and Canada. Those chapters handled 10,444 advertising cases in 2014, compared with 140 at the BBB’s National Advertising Division, said Jane Driggs, CEO of the Better Business Bureau of Utah, who worked on the revision.
Driggs said the BBB followed FTC regulations or guidance on most emerging issues. Local chapters tend to handle simpler cases than the National Advertising Division, she said.
Source & credit
Source: Ad Age: “Better Business Bureaus Revise Ad Code for First Time Since 1970s”, February 12, 2015.