Consumer Reports Relaxes Its Non-Commercialization Policy

Since 1936, Consumer Reports has not allowed companies to use its name or ratings in advertising as a means of promoting their products. However, last week, a regular reader, Dan K., wrote to us saying “I just saw a Kia TV ad which appeared to be a blatant violation of Consumer Reports’ no-advertising policy.”

Here’s the commercial in question. Note what is shown and said at the 16-second mark:

It says that Consumer Reports recommended four different models of Kia vehicles and listed them. The faint fine print on the bottom of the screen that virtually no one would be able to read says…

*MOUSE PRINT:

Consumer Reports does not endorse products or services.

If you were able to follow the QR code in the ad, it would take you to a ratings page at Consumer Reports where readers can see a summarized report about the particular vehicle including the ratings it was given in various categories (only first screen shown below).

Pretty telling, however, is the disclosure that C/R makes in their summary report that this model is just one of 153 recommended SUVs. To MrConsumer, that diminishes what he assumed was a rather unique distinction of getting to be “CR Recommened.”

The traditional policy of the magazine did not allow companies to promote how well Consumer Reports rated their products or even mention Consumer Reports in advertising. But starting in 2022, the “No Commercial Use Policy” changed. The new policy, among other things, allows manufacturers to license the CR/Consumer Reports Recommended logo, and it probably costs them a pretty penny.

A spokesperson for Consumer Reports explained the policy shift in this edited excerpt:

Consumers now rely on many different information channels when researching and shopping for products and services, including social media, online e-commerce, and digital advertising. To help serve consumers where they need guidance and to increase our impact in the marketplace, we’ve expanded our licensing program. Only after Consumer Reports publishes a “Recommended” rating, can a manufacturer opt to display the CR Recommended mark, provided they agree to abide by our strict usage guidelines.

The fees we charge to display “CR Recommended” funds the program’s operating costs, including administering and monitoring the program to assure proper usage. Any remaining funds will support CR’s mission, including our consumer education and advocacy.

So the Consumer Reports non-commercialization policy still exists, but now it has a huge asterisk after it. How do you feel about the policy shift? We welcome your comments.

Incidentally, C/R confirmed that Kia did purchase a license for the above ad, as did Nissan for this ad. However, we’re pretty sure that the use of “CR Recommended” on Costco’s website for an LG dishwasher is not compliant because the summarized report is illegible even on a 24-inch monitor.