Forgers Decline Participation in NAD Forum.

The National Advertising Div. (NAD) of the Council of Better Business Bureaus, Inc., the advertising industry's national forum for voluntary self-regulation, is referring the Forging Industry Assn. (FIA) to the Federal Trade Commission for possible law enforcement action for failing to respond to its inquiry regarding five superiority claims. These unsubstantiated claims included, "Forgings are stronger than castings," "Forging refines defects from cast ingots or continuous cast bars," "Forgings are more reliable, less costly," "Forgings offer better response to heat treatment" and "Forgings' flexible, cost-effective production adapts to demand."

The FIA's advertising for forged metals, created by an unknown agency, was challenged by the Steel Founders' Society of America (SFSA), which maintained that the FIA could not support its superiority claims that appeared in print and website advertising.

During the initial 15-business-day reply period, the FIA produced a copy of a 1-page letter to the SFSA as its substantive response to the issues raised in the challenge. Pursuant to NAD/National Advertising Review Board procedures, the advertiser was notified in December that this was not a substantive response to NAD's inquiry and was given an additional 15 days within which to produce substantiation for the challenged claims. Because the advertiser once again failed to provide a substantial written response after the subsequent 15 business days, NAD will refer the matter to the appropriate government agency for possible law enforcement action.

According to SFSA Executive Vice President Raymond Monroe, the Society is taking exception to the FIA's characterization of castings and the misleading nature and technically inaccurate comparison of castings and forgings. Further, these claims are not helpful in promoting both industries' common commercial interests. "The SFSA is disappointed in the FIA's persistent unwillingness to substantiate its claims," he said. "It would be more helpful if it promoted the technical and commercial attributes of forgings."