National Advertising Division Recommends DREO Limited Discontinue “#1 Brand” Claims for its Fans and Heaters

New York, NY – March 18, 2025 – In a Fast-Track SWIFT challenge filed by competitor Lasko Products, LLC, BBB National Programs’ National Advertising Division recommended that Hesung Innovation Corp./DREO Limited (DREO) discontinue its claims of being the “No. 1 Fan and Heater Brand in the United States.”

Fast-Track SWIFT is an expedited process by the National Advertising Division (NAD) for reviewing single-issue advertising cases.

Lasko and DREO are competitors in the household fan and heater market. Lasko challenged DREO’s “#1 Brand” claims, arguing they were misleading because they excluded sales from brick-and-mortar stores. The claims appeared across various platforms, including DREO’s website, news outlets, social media, retailer sites, and billboards.

Lasko submitted data from market research firm Circana, which accounts for online and brick-and-mortar sales. The data showed that Lasko held nearly 24% of the fan market and 22% of the heater market, compared to DREO’s 3.1% and 6.6%, respectively.

DREO defended its claim, stating it was narrowly defined and based on Stackline data for Amazon U.S. retail sales. The claim covered space heaters from January 2023 to December 2023 and fans from January 2022 to December 2023, with disclosures included in its advertising, including a disclosure stating that the claim is based on “Stackline data for Amazon U.S. Retail Sales of Space Heaters from Jan. 2023-Dec. 2023.”

NAD has long recognized that “#1 Brand” claims strongly influence consumers by conveying a message of market leadership and that a disclosure cannot contradict the primary message of an advertisement.

NAD determined DREO’s advertising conveyed a broad message that DREO fans and heaters are the #1 brand in total sales volume, regardless of the channel in which the products are sold. And, as the evidence in the record did not substantiate this claim, NAD recommended that DREO discontinue its “#1 Brand” claims for fans and heaters.

All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive.

About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.

About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.  

National Advertising Division Recommends DREO Limited Discontinue “#1 Brand” Claims for its Fans and Heaters

New York, NY – March 18, 2025 – In a Fast-Track SWIFT challenge filed by competitor Lasko Products, LLC, BBB National Programs’ National Advertising Division recommended that Hesung Innovation Corp./DREO Limited (DREO) discontinue its claims of being the “No. 1 Fan and Heater Brand in the United States.”

Fast-Track SWIFT is an expedited process by the National Advertising Division (NAD) for reviewing single-issue advertising cases.

Lasko and DREO are competitors in the household fan and heater market. Lasko challenged DREO’s “#1 Brand” claims, arguing they were misleading because they excluded sales from brick-and-mortar stores. The claims appeared across various platforms, including DREO’s website, news outlets, social media, retailer sites, and billboards.

Lasko submitted data from market research firm Circana, which accounts for online and brick-and-mortar sales. The data showed that Lasko held nearly 24% of the fan market and 22% of the heater market, compared to DREO’s 3.1% and 6.6%, respectively.

DREO defended its claim, stating it was narrowly defined and based on Stackline data for Amazon U.S. retail sales. The claim covered space heaters from January 2023 to December 2023 and fans from January 2022 to December 2023, with disclosures included in its advertising, including a disclosure stating that the claim is based on “Stackline data for Amazon U.S. Retail Sales of Space Heaters from Jan. 2023-Dec. 2023.”

NAD has long recognized that “#1 Brand” claims strongly influence consumers by conveying a message of market leadership and that a disclosure cannot contradict the primary message of an advertisement.

NAD determined DREO’s advertising conveyed a broad message that DREO fans and heaters are the #1 brand in total sales volume, regardless of the channel in which the products are sold. And, as the evidence in the record did not substantiate this claim, NAD recommended that DREO discontinue its “#1 Brand” claims for fans and heaters.

All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive.

About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.

About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and leveling the playing field for business.  

Contact Information

Name: Jennie Rosenberg
Email: jrosenberg@bbbnp.org
Job Title: Media Relations
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