Joe Carrafiello

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Joe Carrafiello helps clients protect and expand their intellectual property portfolios and advises on legal issues relating to marketing and advertising matters. Joe provides strategic guidance to assist clients in defending their global assets — he has represented clients of all sizes in the life sciences, pharmaceutical, consumer retail, consumer electronics and appliances, insurance, fashion, beverage and financial industries.

View the full bio for Joe Carrafiello at the Faegre Drinker website.

Posts by Joe Carrafiello


Advertising Alert: Want to Be “Free”? Remember to Disclose All Material Terms

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Offering something for “free” is a powerful advertising tool. But as the National Advertising Division’s (NAD) recent decision in Case No. 7554 makes clear, conditions attached to “free” claims must be disclosed clearly and conspicuously.

Background

The Advertiser, a telecommunications company, ran a campaign advertising “Free Internet Forever” which promised qualifying customers free fiber-powered internet service for life if they obtained and maintained four mobile lines. The Challenger, a direct competitor in the home internet and wireless markets, challenged the campaign before NAD, arguing that the advertising overstated the offer and omitted material limitations consumers needed to make an informed decision. NAD found the core claim substantiated but recommended several modifications to ensure material conditions were clearly disclosed. The Advertiser agreed to comply.

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Advertising Alert — Sit. Stay. Substantiate: NAD Review of Pet Food Claims Provide Important Reminders When Comparing Products

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Brands are increasingly looking to draw sharp distinctions between their products and those of their rivals, and the pet food space is no exception. The National Advertising Division’s (NAD) recent decision in Case No. 7523, The Farmer’s Dog, Inc. v. Sundays for Dogs (closed April 8, 2026), offers a useful set of reminders for advertisers about the boundaries of permissible comparative, ingredient, pricing, and origin claims.

Background

Sundays for Dogs (Sundays) markets an air-dried dog food product and made a range of claims on its website and across social media distinguishing its product from frozen fresh dog foods, including those sold by challenger The Farmer’s Dog, Inc. The challenged claims covered four principal areas: (A) nutritional superiority claims relating to Sundays’ air-drying process (example claim: “Air drying helps lock in more nutrition and flavor than other cooking methods”); (B) no additive and “whole food” composition claims (example claim: “the same ingredients you’d put in your salad, now in your dog’s bowl”); (C) price comparison claims (example claim: savings of “up to 55%” over frozen competitors including Farmer’s Dog); and  (D) a “Made in the USA” claim. During the proceeding, NAD recommended discontinuance or modification of many of the challenged claims. Sundays agreed to comply.

Lessons for Advertisers

  1. Comparative claims require comparative evidence. Sundays claimed that its air-drying process retained more nutrients and flavor than kettle cooking. The studies it submitted, however, examined air-drying only in the abstract and did not compare the process against any competing cooking method. Nor did they address the animal ingredients that comprise the overwhelming bulk of Sundays’ product. NAD substantiated Sundays’ noncomparative claim that its process produces nutrient-dense food but recommended discontinuance of any claim framing air-drying as superior to a competitor’s method.

    Key Takeaway: Evidence that your product performs well on its own terms will generally not support a claim that it outperforms a rival. Comparative claims frequently require evidence actually comparing the products or services.

  2. Ingredient imagery and labeling must accurately reflect what is in the product. Sundays depicted whole fruits and vegetables in its advertising, listed them by name in its ingredient panel, and used language such as “the same ingredients you’d put in your salad, now in your dog’s bowl.” But Sundays incorporates only extracts and isolated nutrients derived from those foods, not the whole foods themselves. NAD found that consumers would reasonably interpret the advertising as representing that whole foods are present in the finished product and recommended discontinuance of the imagery and claims that conveyed that message.

    Key Takeaway: Where a product uses only an extract or isolated nutrient, advertisers should make that distinction clear rather than relying on potentially misleading shorthand.

  3. Context can transform puffery into a claim requiring substantiation. Sundays argued that its claim to have produced “the world’s healthiest and most convenient dog food” was mere puffery. NAD disagreed: because the claim was surrounded by descriptions of Sundays’ three-year development process and 17 product formulations, consumers reasonably would read “healthiest” and “most convenient” as specific, measurable achievements. Per NAD, a superiority claim over the entire market generally requires head-to-head testing demonstrating superiority over at least 85% of the relevant market. No such evidence existed, and NAD recommended discontinuance.

    Key Takeaway: Advertisers who frame superlatives with detailed, process-oriented context should be prepared to substantiate them.

  4. Price comparison claims must clearly disclose the basis of comparison. NAD found that Sundays had adequate support for its claim of being “up to 55% less pricey” than the average frozen dog food. However, because the frozen premium pet food market is small and The Farmer’s Dog is one of its most prominent participants, NAD found that consumers would reasonably read the comparison as directed at Farmer’s specifically, which was not supported by the relevant evidence. NAD recommended that Sundays modify its pricing claims to clearly and conspicuously disclose that the savings figure reflects a comparison to the average of frozen dog foods, not any single competitor.

    Key Takeaway: Savings claims must be narrowly drawn, and the basis of comparison must be transparent.

  5. An unqualified “Made in USA” claim requires scrutiny of every ingredient. Sundays sourced beef bone and fish oil from New Zealand, representing a small share of total manufacturing costs. But because those ingredients are essential to the product meeting relevant nutritional standards, NAD found that an unqualified “Made in the USA” claim was inappropriate regardless of their proportionally small share of overall costs.

    Key Takeaway: Advertisers sourcing ingredients from outside the United States should carefully evaluate whether those ingredients are functionally critical before making an unqualified “Made in USA” claim. See further commentary on Made in USA claims here: Advertising Alert: Saying Your Product is “Made in USA”? Remember Your Advertising Obligations – TCAM Today

Taken together, NAD’s decision is a useful reminder that competitive advertising can be powerful but must be supported by relevant evidence that compares the relevant products. As always, our advertising team is happy to assist with advising on best practices with making comparative claims in advertising.

Advertising Alert: NAD Scrutinizes Dietary Supplement Dosage Claims

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The dietary supplement industry sometimes relies on eye-catching numbers to signal potency and value. But as the National Advertising Division’s (NAD) recent decision in Case No. 7522, Reus Research LLC v. Iron Rock Ventures LLC, makes clear, a big number on the front label must be properly supported, and a fine-print disclaimer buried in the Supplement Facts Panel cannot save a misleading claim.

The Advertising Claims

Iron Rock Ventures LLC (Iron Rock) markets the thinbi NAD+ dietary supplement, a product containing NAD+ (nicotinamide adenine dinucleotide) along with several botanical extracts. The front label of the thinbi NAD+ product prominently displays the statement “8,457MG | 30 CAPSULES.” The same figure appeared in Amazon product page headlines (e.g., “NAD Supplement 8,457 mg Extra Strength…”) and in Instagram posts featuring the product.

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Advertising Alert: Use Caution When Advertising Your Product’s Artificial Intelligence (AI) Features

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Artificial Intelligence (AI) is rapidly developing, and marketers are eager to tout the benefits of new AI features incorporated into their products. But as advertising of new AI features becomes more common, legal scrutiny around the substantiation and privacy implications of AI claims is also intensifying, as evidenced by the National Advertising Division’s (NAD) and Children’s Advertising Review Unit’s (CARU) Case #7485 reviewing Dorel Juvenile Group’s advertising for the Maxi-Cosi Sibia Bassinet and Starling Smart Bassinet both featuring the “CryAssist” AI technology.

The Advertising Claims

Dorel’s bassinets at issue use “CryAssist,” a feature marketed as using AI to “translate your little one’s cries, letting you know if they might be sleepy, fussy, gassy, agitated, or hungry.” Other prominent claims included assurances that “everyday conversation [is] kept private,” that “cries and cry data [are] kept anonymous and encrypted on our cloud,” and that all response-based features are “optional, ensuring control is always in your hands.” These claims are appealing to new parents but also raise questions about accuracy, privacy, and compliance with children’s data protection laws.

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Advertising Alert: Remember What It Takes to be “Number One”

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Claiming that your product is “#1” in its category can be highly impactful, but as illustrated by the National Advertising Division (NAD) Case #7544, it can also lead to competitor or regulatory challenges when not properly supported.

In Case #7544, Owlet challenged Nanit’s social media advertising describing its Wi-Fi-connected baby monitor as the “#1 smart baby monitor” and the “#1 baby monitor” without any qualification or citation to supporting sales data in proximity claims. Owlet challenged these claims on the basis that Nanit could not provide the requisite sales data to support them. The challenge was accepted for NAD’s Fast-Track SWIFT process because it “did not require the review of complex evidence or argument”.[1]

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Advertising Alert: Saying Your Product is “Made in USA”? Remember Your Advertising Obligations

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As the United States approaches its 250th anniversary in 2026, the “Made in USA” label holds more significance than ever. Consumers increasingly look for domestic products, associating them with quality, reliability, and support for local jobs. Yet, as a recent National Advertising Division (NAD) decision shows, using “Made in USA” claims in advertising, whether explicitly or implicitly, comes with legal responsibilities designed to protect both businesses and consumers.

On December 23, 2025, NAD issued Decision #7520, where the Advertiser had labeled and advertised several products as “Made in USA” leading to questions about whether those claims met the Federal Trade Commission’s (“FTC”) Made in USA Policy Statement and its Made in USA Labeling Rule[1]. The Challenger alleged that the Advertiser’s claims were misleading because the products incorporated numerous foreign components including imported buckles, fibers, and leather.

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Welcome to our Advertising Alert Series

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Welcome to our new Advertising Alert Series, where we will use recent National Advertising Division (NAD) decisions as real-world examples to examine various ad law principles.

To set the stage for our forthcoming blogs, it is helpful to provide some context on the NAD. As some of our readers may be aware, the NAD is a division of BBB National Programs, an advertising self-regulation program established in 1971 to monitor and review national advertising across the United States. Its primary purpose is to protect consumers from false or misleading advertising claims and to ensure fair advertising among competitors in the marketplace. NAD investigates advertising claims that are brought forward by competitors, consumers, or on its own initiative, examining national ads that appear in television, print, online, and social media.

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For In-House Counsel: 12 Questions to Ask When the Business Team Wants to Launch a Sweepstakes or Contest (Tomorrow)

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We’ve seen this scenario (one too) many times before: the business/marketing team comes to the in-house legal team and wants to run a sweepstakes or contest to promote a brand or a new product line. Surprise! They are hoping to launch it as soon as possible – maybe even tomorrow. But in the request to the legal team for approval, details are sparse, and it isn’t clear exactly what the business team intends to do.

In case you’re faced with an “emergency” like the one described above, this blog post is intended to provide a quick tool kit for in-house lawyers to keep things on track by asking the following questions:

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Recap: 2023 ANA Annual Advertising and Marketing Law Conference

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If artificial intelligence is so great, why can’t it reliably predict the weather?

The weekend has just closed on another very rainy Floridian ANA Masters of Advertising Law Conference (Last year we had a hurricane, so this would qualify as an uninspiring upgrade). The Masters Conference is the largest advertising, marketing and promotion law conference in the nation, bringing together major brands, storied advertising agencies, and prominent regulators to discuss cutting-edge topics impacting the industry. Each year – not by design but by happenstance – a different theme is featured. This year, to no one’s surprise, the focus was on AI.

While not every session discussed AI in depth, most speakers devoted some time to the subject throughout the 3-day event.  Panelists confronted questions like: does algorithmic bias, increasingly employed in various industries, constitute an unfair trade practice?  How will regulators view advertising claims based on next gen tech?  What copyright traps exist for the unwary utilizing AI to generate advertising content?  Are US and international privacy laws evolving fast enough to keep up with new challenges posed by AI?  And while it had nearly zero to do with AI, the conference would have felt incomplete without a discussion of what drag queens can teach advertising lawyers about intellectual property protection.  Many learned more about Cardi B’s album covers during that session than they could have imagined in their wildest dreams.

There is no doubt that AI will affect the advertising and marketing landscape for years to come.  Like the metaverse (last year’s theme) and crypto assets (the year before that), these issues are not new.  But despite AI having been around for some time, the leaps forward that generative AI applications have made this year appear poised to significantly transform the landscape of advertising content creation and delivery.  President Biden’s October 30th Executive Order is one of the first major steps being taken to set limits on AI technologies while funneling their potential for good.  Among other things, that Order directs the U.S. Patent and Trademark Office and U.S. Copyright Office to issue a report on “potential executive actions relating to copyright and AI.”

We will of course be following this issue closely as the technology – and its implications for intellectual property and advertising issues – evolves.  But we will hold our concerns regarding AI singularity at bay until such time as we receive an accurate forecast for the next ANA Conference.  (It’s in Arizona, so we’re blithely optimistic.)

Until next year!

The FTC’s Updated Endorsement Guides: Do They Say More Than We Already Know?

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On June 29, the Federal Trade Commission (FTC) published its updated Guides Concerning the Use of Endorsements and Testimonials in Advertising (“Guides”), together with an FAQ document, FTC’s Endorsement Guides:  What People Are Asking (“FAQ”).  One day later, it announced its proposal for a new Trade Regulation Rule on the Use of Consumer Reviews and Testimonials (“Trade Regulation”).  In the spirt of the FTC’s FAQ, we figured we would post a brief one of our own, highlighting some of the big changes (and non-changes).

Can you please explain what’s going on in one paragraph or less?

As background, the Guides explain the FTC’s view on the propriety of endorsements and testimonials made by third parties on behalf of advertisers under Section 5 of the FTC Act, which prohibits unfair and deceptive trade practices.  The Guides were last updated in 2009.  This update therefore brings a refresh and clarifies the FTC’s view on various scenarios that have arisen since 2009 given changes in technology and marketing practices.  The Trade Regulation, by comparison, is focused on the narrow topic of fake consumer reviews, which are singled out because (a) they have been a particular focus of the FTC of late; and (b) the regulation would clearly entitle the FTC to seek civil penalties for violations (whereas its ability to do so under Section 5 of the FTC Act is somewhat murky).

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