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Advertising Alert: Unfavorable NAD Decisions Cannot Be Used To Shift Burden of Proving False Advertising Claims To Defendant In Consumer Fraud Class Actions

March 4, 2013

In a decision of note, the District of New Jersey recently granted defendant Bayer Healthcare LLC's motion to dismiss a putative class action complaint alleging, inter alia, a violation of the New Jersey Consumer Fraud Act (the "NJCFA"). The court held that a report issued by the National Advertising Division of the Better Business Bureau (the "NAD") was insufficient to support plaintiffs' claims that Bayer's advertising was false. Given the recent trend of plaintiff consumer class actions following on the heels of NAD reports, this decision may have important implications.

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