ARTICLE
8 August 2019

NAD Recommends Improvements To Baby Monitor Performance Disclosures

SM
Sheppard, Mullin, Richter & Hampton LLP

Contributor

Businesses turn to Sheppard to deliver sophisticated counsel to help clients move ahead. With more than 1,200 lawyers located in 16 offices worldwide, our client-centered approach is grounded in nearly a century of building enduring relationships on trust and collaboration. Our broad and diversified practices serve global clients—from startups to Fortune 500 companies—at every stage of the business cycle, including high-stakes litigation, complex transactions, sophisticated financings and regulatory issues. With leading edge technologies and innovation behind our team, we pride ourselves on being a strategic partner to our clients.
Owlet Baby Care, Inc. advertised its "Smart Sock" baby monitor with prominent claims that the monitor offers parents "peace of mind," and promises that babies will "be ok."
United States Media, Telecoms, IT, Entertainment
Robert E. Hough II’s articles from Sheppard, Mullin, Richter & Hampton LLP are most popular:
  • within Media, Telecoms, IT and Entertainment topic(s)
  • in United States
  • with readers working within the Business & Consumer Services and Consumer Industries industries
Sheppard, Mullin, Richter & Hampton LLP are most popular:
  • within Cannabis & Hemp topic(s)

Owlet Baby Care, Inc. advertised its "Smart Sock" baby monitor with prominent claims that the monitor offers parents "peace of mind," and promises that babies will "be ok." The ad message is qualified by disclaimers that the monitors are not medical devices and cannot be used to prevent or treat health conditions. The National Advertising Division (part of the Council of the Better Business Bureau), however, recently declared these disclaimers insufficient. The NAD was concerned that the advertising could be interpreted as saying the monitor could prevent SIDS or other illnesses.

The "Smart Sock" is a monitor device that sends alerts when the baby's oxygen levels and heart rate deviate from predefined levels. After reviewing confidential data and other information submitted by Owlet during the investigation, the NAD concluded that Owlet's claims that the Smart Sock provides accurate oxygen and heart rate readings were appropriately substantiated.

However, the NAD's other concern was that Owlet's disclosures as to other features of the Smart Sock were hard to find, and full of dense technical language.

The NAD advised Owlet that material disclosures (such as those concerning performance, features, safety and effectiveness of a product) must be clear and conspicuous in the advertising message. Specifically, the NAD advised that the Smart Sock disclosures should make clear that the monitor only gathers information, and is merely a tool for making decisions regarding the baby's healthcare. The NAD determined that consumers could reasonably imply that use of the Smart Sock could prevent SIDS and save a baby's life. The NAD wanted more clear and conspicuous disclosures to help parents understand the important limits of the monitor's features and performance, which may not otherwise be clear from Owlet's primary advertising claims.

Putting it Into Practice: Advertisers could face liability for publishing potentially misleading claims that should be clarified through material disclosures. Accordingly, a reliable advertising legal review process should be standard operating procedure for brands and their ad agencies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More