New York, August 8, 2002 – The Children's Advertising Review Unit (CARU) of the Council of Better Business Bureaus, Inc. (CBBB), the children's advertising industry's self-regulatory forum, is pleased to announce that L'Oreal USA, Inc. has agreed to modify future advertising for two of its L'Oreal Kids products, Strawberry Smoothie shampoo and Fast Dry shampoo, to comply with CARU's Self-Regulatory Guidelines for Children's Advertising. The accuracy of some of the advertising claims came to CARU's attention through its routine monitoring activities.

Television, Website and packaging for Strawberry Smoothie shampoo made claims such as "Strawberry Smoothie shampoo for dry hair and split ends" and "No Tangles. No Split Ends!" creating the impression that the shampoo is useful for curing split ends. Advertisements for Fast Dry shampoo claimed that hair washed with Fast Dry shampoo "dries in a flash" or dries so quickly that children could wash their hair at bedtime and not have a wet pillow. CARU found the evidence submitted by L'Oreal sufficient to substantiate the claims that Strawberry Smoothie does not cause tangles and that Fast Dry shampoo is much faster drying than ordinary shampoos. CARU found, however, L'Oreal's evidence was insufficient to substantiate the claim that Strawberry Smoothie cures split ends and that Fast Dry dries in a "Flash." CARU recommended that the claims be modified to conform to the proof by clarifying that Strawberry Smoothie will help prevent (not cure) split ends and, with regard to Fast Dry, disclose the actual time saved by using that product.

L'Oreal worked constructively with CARU on this matter. In a statement to CARU, L'Oreal thanked CARU for its thorough review of the claims and stated, "We support CARU's mission, and we appreciate CARU's guidelines and opinions."

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.