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Published on June 21st, 2013

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Nest Programmable Thermostats

Nest Labs Inc. claimed in advertisements for its Nest Programmable Thermostat that “89% of other programmable thermostats are not programmed because they are so complicated that most consumers do not bother to program them,” and that “[o]ther programmable thermostats waste energy.”

Rival thermostat maker Honeywell objected to Nest’s claims and appealed to NAD. After reviewing the evidence, “NAD recommended that the advertiser discontinue its unsupported specifically quantified claims.”

Nest Labs disagreed with the NAD’s ruling, but agreed to modify its advertisements.

Consumers should check out an advertiser’s claims for themselves before handing over money for a product.

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The National Advertising Division, or NAD, is an investigative unit of the advertising industry’s system of self-regulation. It is administered by the Council of Better Business Bureaus. NAD asks advertisers to substantiate or change their claims in advertisements. As part of a voluntary system of self-regulation, however, its recommendations can be ignored by the offending advertisers. In those instances, NAD refers the offender to federal consumer protection agencies.

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