Concerned at the role reversal seen now, the attorneys general in the UShave recently produced a preliminary report to inform interested parties andthe public about the legal and policy issues raised by the trend ofpartnerships between commercial entities and non-profit organisations tomarket commercial products using the names and logos of the non-profitorganisations.

The report says that commercial-non-profit product advertisements oftencommunicate the false and misleading messages that the products have beenendorsed by the non-profit partner in the commercial-non-profit relationshipand that such products are superior to other competing products. The reportexpresses concern that some promotions may further mislead the public aboutthe effect consumers' purchases may have on the level of charitablecontributions the commercial sponsor will make.

Additionally, such joint advertising campaigns, using a respectednon-profit's name and logo, often fail to provide important informationconsumers need in order to make informed choices, including the fact thatthe commercial sponsor has paid the non-profit organisation for the use ofits name and logo.

Making some key recommendations in this important public protection area,the report calls for both the commercial sponsor and the non-profitorganisation engaged in advertising a commercial product through the use ofthe non-profit's name or logo to satisfy all applicable legal standards,including compliance with consumer laws prohibiting false advertising,unfair and/or deceptive trade practices and consumer fraud.

The advertising of commercial products must not misrepresent that thenon-profit organisation has endorsed the advertised product. If such anadvertisement uses a non-profit organisation's name or logo, and thenon-profit has not in fact endorsed the advertised product, theadvertisement must clearly and conspicuously disclose that the non-profitorganisation has not endorsed or recommended the product.

Advertisements for commercial products using the name or logo of anon-profit organisation must avoid making express or implied claims that theadvertised product is superior to others in the same product category,unless the claim is true and substantiated, and the non-profit hasdetermined the advertised product to be superior to others in the sameproduct category. If the non-profit has not determined the advertisedproduct to be superior, the advertisement must clearly and conspicuouslydisclose that fact.

Commercial product advertisements using the name or logo of a non-profitmust disclose clearly and conspicuously the fact that the corporate sponsorhas paid for the use of the non-profit's name or logo when that is the case.Product advertisements arising from a commercial-non-profit relationshipshall not mislead, deceive or confuse the public about the effect of theconsumer's purchase on charitable contributions by the commercial sponsor,recommends the report.

The report believes that adherence to these principles is in the publicinterest and will assist both the commercial and non-profit entities engagedin product advertising in meeting their legal obligations. Implementingtruth-in-advertising principles will benefit both partners alike,particularly as they seek to maintain the high levels of public trust andadmiration that non-profit organisations have long enjoyed as a result oftheir valuable contributions to the health and welfare of society.

Key findings