eCommerce
In 2019 and in response to a competitor challenge, the National Advertising Division ruled on the “#1 Rated” claim made by TaxSlayer LLC in its promotional messages. In doing so, the NAD recommended that TaxSlayer discontinue the unsubstantiated representation.
More specifically, the claims at issue included “Slay your taxes. So you can enjoy your refund. Maximize your refund with TaxSlayer. #1 rated on Trustpilot” and “#1 Rated in the Tax Prep Software Category on Trustpilot. Start free today!”
Theer was a disclosure that stated that the foregoing claims were “based on more than 2300 verified customer reviews on Trustpilot. TaxSlayer has 1500+ 5-star reviews, and 84% of TaxSlayer customers rate TaxSlayer Great or Excellent on Trustpilot. Learn more at trustpilot.com/review/taxslayer.”
The NAD opined that for “#1 Rated” claims, advertisers should compare themselves with at least 85% of the applicable marketplace, and the consumers surveyed should represent a broad base of customers that used the product.
According to the NAD, TaxSlayer did not satisfy such requirements because the population of online reviews that created the basis for Trustpilot’s score allegedly failed to represent the general opinion of tax preparation software consumers across the United States. The NAD also rejected TaxSlayer’s argument that a consumer could simply visit the Trustpilot website to clarify any confusion about its ranking.
“Consumers should not have to search to learn more about the limitations on an advertising claim,” said the NAD. “Here, while the claim informs consumers that it is limited to companies in the tax prep software category on a certain website,
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Hinch Newman LLP’s advertising and marketing practice includes successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. The firm possesses superior knowledge and deep legal experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. Through these advertising and marketing law updates, Hinch Newman provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/judicial process. This blog is sponsored by Hinch Newman LLP.