NAD Refers “Danish” Cookie Controversy to FDA, FTC

The National Advertising Division (NAD), an investigative unit of
the U.S. advertising industry’s system of self-regulation, has referred
to the U.S. Food and Drug Administration (FDA) and Federal Trade
Commission (FTC) an ad campaign for Danisa “Traditional Butter
Cookies,” which are manufactured by the Mayora Group in Indonesia and
distributed by Takari International, Inc. NAD evaluated the campaign
in April 2015 after Campbell Soup Co. challenged several aspects of the
product’s marketing, including the claim that the cookies are “produced
and packed in Denmark” and “baked following the original recipe from
Denmark,” as well as the use of Scandinavian imagery. Further, Campbell
argued that FDA requires any product labeled as “Butter Cookies” to use
only butter as a shortening ingredient, but multiple independent studies
have shown the presence of a non-butter fat ingredient in the Danisa
product.

Takari International argued it could not be liable for packaging claims
or discrepancies in the ingredients, but NAD disagreed, recommending
Takari discontinue the challenged claims. While noting its objections,
the company agreed to stop advertising the product and promised to
stop purchasing the cookies in the future. During NAD’s later compliance
inquiry, Takari told the board that the product is “a completely new
product” not reviewed by NAD. The board found that Takari “failed to
provide NAD with any substantiation of this fact—save for anecdotal
evidence,” and the product continued to feature “Danish costumers,
crowns, and other Scandinavian settings that NAD recommended be
discontinued.” Accordingly, the board referred the marketing campaign
to FDA and FTC for further review.

Issue 585