Lasko Products, LLC (“Lasko”) and the Hesung Innovation Corp./DREO Limited (“DREO”) are competitors, both specializing in the fan and heater market. Recently, Lasko filed a Fast-Track SWIFT challenge with the National Advertising Division (NAD). Fast-Track SWIFT is an expedited process by NAD for reviewing single-issue advertising cases. Lasko argued that DREO’s claims were misleading by excluding sales from brick-and-mortar stores. Furthermore, Lasko submitted market research, indicating that Lasko held nearly 24% of the fan market and 22% of the heater market, compared to DREO’s 3.1% and 6.6%.
Lasko’s efforts proved to be successful, as in a recent decision, NAD recommended that DREO discontinue its claim of being the “#1 Fan and Heater Brand in the United States.” NAD concluded that DREO’s “No. 1 Brand” advertising projected a broad message that their fans and heaters are the #1 brand in total sales volume, regardless of the channel in which the products are sold. Ultimately, NAD determined that DREO’s advertising claims were not substantiated by evidence.
More information regarding NAD’s recent decision is available here.
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