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Case #5479 (06/29/12) NUTRISYSTEM, INC. Nutrisystem Pinterest Board Challenger: Product Type: Issues: Disposition: - National Advertising Division Drugs / Health / Health Aids Testimonials, Disclosures No Further Action Required Testimonials which tout atypical results must be qualified by a clear and conspicuous disclosure noting the results the consumer can generally expect to achieve using the product in the circumstances depicted. Such disclosures should appear in close proximity to the claims they are intended to qualify. Basis of Inquiry: As part of its routine monitoring program, NAD reviewed consumer testimonials posted to Nutrisystem, Inc.’s “Real Consumers. Real Success.” Pinterest board by Nutrisystem, Inc. (“Nutrisystem”). The following claims served as the basis for the NAD inquiry: Express Claims - “Christine B. lost 46lbs on Nutrisystem.” “Michael H. lost 125 lbs. on Nutrisystem.” “Lisa M. lost 115 lbs. on Nutrisystem.” “Christine H. lost 223 lbs. on Nutrisystem.” Advertiser’s Position: The advertiser explained that the necessary disclosures (alerting consumers as to the typical weight lost by Nutrisystem customers), which are included in all Nutrisystem advertising containing testimonials, were inadvertently omitted from Pinterest. The advertiser stated that the testimonials at issue here had appeared on Pinterest for less than two months, and the disclosures were added immediately upon receipt of NAD’s letter.1 Decision: I. Background Pinterest is a virtual pinboard often described as a social photo sharing website where users create and manage theme-based image collections by “pinning” digital content they find on the web to their personal pinboards. All pinboards are open to the public and can be found by searching for a category of interest on Pinterest’s main page (such as DIY, Recipes, Home 1 The disclosure states: “Results not typical. On Nutrisystem®, you can expect to lose at least 1-2 lbs. per week. Individuals are remunerated. Weight lost on prior Nutrisystem® program.” Design and Fashion). Users may also conduct a search by using a keyword and specifying whether they are searching for an individual pin, for a board, or for a person. When a user finds something on the Internet that they would like to share or collect, they can “pin” the content to one of their boards using the “pin it” button they have installed on their web browser. When content is “pinned” Pinterest automatically grabs the source link for the content which allows Pinterest to give credit to the original creator, and, allows users to return to the original source of the content simply by clicking on the image as it appears on the pinboard. As a result, Pinterest has become a new way for companies to encourage consumers to engage with their products, and simultaneously, drive traffic to their websites. Users browse other pinboards as well as their own “pin feed,” which is featured on the main page of a user’s account and displays the activity of other “pinners” they follow. Pinning an image found on another Pinterest board, rather than somewhere on the Internet, is called “re-pinning.” Whenever an image is “pinned” or “re-pinned” Pinterest prompts the user to direct the image to the specific pinboard they wish to pin to, and, provide comments or notes about the image (if they wish).2 In addition to “pinning” and “re-pinning,” users also have the option of “liking” content on Pinterest. A “like” on Pinterest is similar to a “like” on Facebook in that it is a way to communicate and interact with other users on Pinterest. A “like” is different from a “pin” or “repin” in that it does not result in the content being displayed on one of the user’s pinboards. Each of these Pineterest actions can also be shared with Facebook “friends” and Twitter “followers.” II. The Nutrisystem Advertising In early April of 2012, NAD noticed that Nutrisystem created a Pinterest account and several pinboards. One board, entitled “Real Customers. Real Success.” featured photos of “real” Nutrisystem customers and highlighted their weight loss success. The customer’s name, total weight loss and a link to the Nutrisystem website appeared below each photo. It is undisputed that these pins represent consumer testimonials. Section 255.2 (b) of the FTC’s Guidelines Concerning the Use of Endorsements and Testimonials in Advertising states: An advertisement containing an endorsement relating the experience of one or more consumers on a central or key attribute of the product or service also will likely be interpreted as representing that the endorser's experience is representative of what consumers will generally achieve with the advertised product or service in actual, albeit variable, conditions of use. Therefore, an advertiser should possess and rely upon adequate substantiation for this representation. If the advertiser does not have substantiation that the endorser's experience is representative of what consumers will generally achieve, the advertisement should clearly and conspicuously disclose the generally expected performance in the depicted circumstances, and the advertiser must possess and rely on adequate substantiation for that representation. 2 For many Pinterest users, this space is often used for general comments about the item, however, for advertisers, this space is often used to note important information including disclosures, prices or where the item can be purchased. The weight loss “pins” found on Nutrisystem’s “Real Customers. Real Success.” board tout atypical results (i.e., “Michael H. lost 125 lbs. on #Nutrisystem” or “Lisa M. lost 115 lbs. on #Nutrisystem). Therefore, these pins should be accompanied by a clear and conspicuous disclosure noting the typical results consumers can expect to achieve using the Nutrisystem weight loss program.3 As noted above, the advertiser agreed that such statements require a disclosure, and, added the necessary disclosure (“Results not typical. On Nutrisystem®, you can expect to lose at least 1-2 lbs. per week. Individuals are remunerated. Weight lost on prior Nutrisystem® program.”) immediately upon receiving the NAD inquiry letter. For these reasons NAD noted its appreciation for the advertiser’s immediate change to the advertising in question, and, concluded that no further action is necessary at this time. Conclusion: NAD noted its appreciation for the advertiser’s immediate change to the advertising in question – an action deemed necessary and proper. Thus, NAD concluded that no further action is necessary at this time. Advertiser’s Statement: Nutrisystem shares NAD’s goal of promoting truthful, accurate advertising and ethical business practices, and supports advertising self-regulation to advance that goal. (#5479 KLF, closed 06/29/2012) © 2012. Council of Better Business Bureaus, Inc. 3 It is important to note that if consumers browsing the Nutrisystem Pinterest board clicked on Nutrisystem’s consumer testimonial pins they were redirected to Nutrisystem’s website which included the necessary qualifying information (i.e., the typical results a consumer can expect to achieve using the Nutrisystem program). However, it is well-established that disclosures should not only be clear, conspicuous and easy to understand, but placed in immediate proximity to the claim or representation it is intended to clarify. The Campbell Soup Company (Campbell’s Supper Bakes), Case #4038, NAD/CARU Case Reports (May/June 2003). Therefore, providing the disclosure on the website (which the consumer may or may not visit), is not sufficient.