New York, NY—December 20, 2001---The Children's Advertising Review Unit of the Council of Better Business Bureaus (CARU) is pleased to announce that Ferrero U.S.A., Inc. has removed several promotional claims on its Website, nutellausa.com, comparing the dietary benefits of its product, Nutella, a hazelnut spread, with those of peanut butter. Ferrero also agreed to make changes to its privacy policy and age screening to address concerns raised by CARU.

The Website had been promoting the fact that, compared to leading peanut butter, Nutella has 37% less fat and 87% less sodium. However, the site omitted a comparison of a key nutritional concern for children—sugar content. Nutella has a sugar content of 21 grams in one serving as opposed to 2 grams or 3 grams in a serving of peanut butter. CARU's position was that, taking into consideration government guidelines and medical community recommendations on sugar consumption, children could get the wrong impression about the overall dietary benefits of Nutella as opposed to peanut butter.

Children were attracted to nutellausa.com through a sweepstakes featuring Nutella's celebrity endorser, Kobe Bryant, that appeared in Sports Illustrated for Kids, as well as its Website, sikids.com.

In cooperating with CARU, Ferrero U.S.A., Inc affirmed its goal of trying to ensure that its advertising messages are unambiguous to children and appropriate for all.

CARU commends Ferrero's responsiveness in addressing the comparative claim issues presented here.

CARU's inquiry was conducted under NAD/NARB/CARU Procedures for Voluntary Self-Regulation of National Advertising. Details of the inquiry, CARU's decision and the advertiser's response will be included in the next NAD/CARU Case Report. Members of the press who wish to see a copy of the decision now should email CARU.

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The National Advertising Review Council (NARC) was formed in 1971 by the Association of National Advertisers, Inc. (ANA), the American Association of Advertising Agencies, Inc. (AAAA), the American Advertising Federation, Inc. (AAF), and the Council of Better Business Bureaus, Inc. (CBBB). Its purpose is to foster truth and accuracy in national advertising through voluntary self-regulation. NARC is the body that establishes the policies and procedures for the CBBB's National Advertising Division (NAD), The Children's Advertising Review Unit (CARU), and the National Advertising Review Board (NARB).

NAD and CARU are the investigative arms of the advertising industry's voluntary self-regulation program. Their casework results from competitive challenges from other advertisers, and also from self-monitoring traditional and new media, including the Internet. The National Advertising Review Board (NARB), the appeals body, is a peer group from which ad-hoc panels are selected to adjudicate those cases that are not resolved at the NAD/CARU level. This unique, self-regulatory system is funded entirely by the business community; CARU is financed by the children's advertising industry, while NAD/NARB's sole source of funding is derived from membership fees paid to the Council of Better Business Bureaus.