Freshpet's Advertising Deemed Misleading by NAD
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy FRPT?
Source: seekingalpha
- Misleading Advertising Ruling: The BBB National Programs' National Advertising Division (NAD) ruled that Freshpet's (FRPT) claims about its dog food being human-grade are misleading, requiring the company to cease such statements, highlighting the regulatory scrutiny on advertising accuracy.
- Competitor Challenge: The Farmer’s Dog challenged Freshpet, arguing that its video ads imply its dog food is made like human food, reflecting compliance issues in advertising within a competitive market that could affect consumer trust.
- Negative Market Reaction: Following NAD's recommendation, Freshpet's shares fell for the sixth consecutive session, totaling a 17% loss, indicating market concerns over the company's brand image and future sales outlook, which may impact investor confidence.
- Advertising Adjustment Commitment: Freshpet has informed NAD of its intention to modify its advertising claims by removing the phrase “the same way you make healthy food for people,” demonstrating the company's willingness to adapt its marketing strategy in response to regulatory pressures to maintain brand integrity.
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Analyst Views on FRPT
Wall Street analysts forecast FRPT stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 55.930
Low
61.00
Averages
71.67
High
87.00
Current: 55.930
Low
61.00
Averages
71.67
High
87.00
About FRPT
Freshpet, Inc. is focused on the development, manufacturing, marketing, and distribution of pet food products. The Company's products consist of dog food, cat food and dog treats. The Company's products are made according to its nutritional philosophy of fresh, meat-based nutrition and minimal processing. Its proprietary recipes include real, fresh meat and varying combinations of vitamin-rich vegetables, leafy greens, and antioxidant-rich fruits, without the use of preservatives or additives. Its products are sold under the Freshpet brand name. The Company sells its products through a network of Company-owned branded refrigerators, Freshpet Fridges. The Company sells its products throughout the United States, Canada, and Europe. It sells its products through various classes of retail: grocery, mass, international, digital, pet specialty, and club. The Company also offer fresh treats across all classes of retail under the Dognation and Dog Joy labels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Freshpet Faces Legal Scrutiny Over Misleading Advertising Claims
- Advertising Misconduct Investigation: Freshpet is under scrutiny for misleading dog food advertisements, as the BBB's National Advertising Division (NAD) found that its video ads implied the product is human-grade, prompting a recommendation to cease such claims, which could harm brand reputation.
- Significant Stock Decline: Following the allegations, Freshpet's stock plummeted nearly 11%, dropping from $75.37 on March 16 to $67.42 on March 17, indicating a loss of investor confidence in the company's future prospects.
- Legal Rights Notification: Kessler Topaz Meltzer & Check LLP is investigating potential violations of federal securities laws by Freshpet, urging affected investors to reach out to understand their legal rights, highlighting the potential legal risks facing the company.
- Investor Losses Substantial: Investors in Freshpet have experienced significant financial losses due to the misleading advertising, and the involvement of the law firm may lead to future class-action lawsuits, further impacting the company's financial health and market performance.
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- Market Share Dynamics: While Freshpet leads in total revenue and market share, The Farmer’s Dog is rapidly gaining ground as a leading direct-to-consumer brand, which could pressure Freshpet's sales.
- Advertising Controversy: Freshpet faced accusations of misleading consumers by labeling its dog food as 'human grade,' leading to recommendations to cease such claims, highlighting challenges in brand image and consumer trust.
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Freshpet's Misleading Ads Lead to Stock Plunge
- Advertising Misconduct Investigation: Freshpet is under scrutiny for misleading dog food advertisements, as the BBB's National Advertising Division (NAD) found that its video ads imply the food is human-grade, leading to a recommendation to cease such claims, which could damage brand credibility.
- Significant Stock Decline: Following the misleading ad ruling, Freshpet's stock plummeted from $75.37 on March 16 to $67.42 on March 17, representing a nearly 11% drop, indicating market concerns about the company's future prospects.
- Investor Rights Affected: The stock decline due to the advertising issue has resulted in substantial financial losses for Freshpet investors, prompting Kessler Topaz Meltzer & Check to investigate potential violations of federal securities laws to safeguard investor rights.
- Legal Consultation Opportunity: KTMC encourages affected Freshpet investors to reach out for legal advice regarding their rights, demonstrating the firm's commitment to supporting and protecting investors' interests.
See More
Freshpet Faces Legal Scrutiny Over Misleading Advertising Claims
- Advertising Misconduct Investigation: Freshpet is under scrutiny for misleading dog food advertisements, as the BBB's National Advertising Division (NAD) found that its video ads implied the product is human-grade, prompting a recommendation to cease such claims, which could harm brand reputation.
- Significant Stock Decline: Following the allegations, Freshpet's stock plummeted nearly 11%, dropping from $75.37 on March 16 to $67.42 on March 17, indicating a loss of investor confidence in the company's future prospects.
- Legal Rights Notification: Kessler Topaz Meltzer & Check LLP is investigating potential violations of federal securities laws by Freshpet, urging affected investors to reach out to understand their legal rights, highlighting the potential legal risks facing the company.
- Investor Losses Substantial: Investors in Freshpet have experienced significant financial losses due to the misleading advertising, and the involvement of the law firm may lead to future class-action lawsuits, further impacting the company's financial health and market performance.
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Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of analyst thinking rather than definitive investment advice.
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Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of analyst thinking rather than definitive investment advice.
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- Celsius Holdings Stock Pressure: Celsius Holdings' stock is facing pressure this week as investors react to market developments.
- Costco's New Energy Drink: The launch of a low-cost energy drink by Costco Wholesale is raising concerns about its potential impact on the demand for Celsius products.
See More
Freshpet Shares Drop 17% Amid Competitive Pressure from The Farmer's Dog
- Increased Competition: Freshpet (FRPT) shares have fallen by as much as 17% in response to The Farmer’s Dog launching fresh dog food at Walmart, indicating market concerns about its future growth prospects.
- Market Share Dynamics: While Freshpet leads in total revenue and market share, The Farmer’s Dog is rapidly gaining ground as a leading direct-to-consumer brand, which could pressure Freshpet's sales.
- Advertising Controversy: Freshpet faced accusations of misleading consumers by labeling its dog food as 'human grade,' leading to recommendations to cease such claims, highlighting challenges in brand image and consumer trust.
- Stock Performance: The stock has now experienced six consecutive days of decline, reflecting waning investor confidence in the company's future performance, which may impact its financing and market expansion capabilities.
See More
Freshpet's Misleading Ads Lead to Stock Plunge
- Advertising Misconduct Investigation: Freshpet is under scrutiny for misleading dog food advertisements, as the BBB's National Advertising Division (NAD) found that its video ads imply the food is human-grade, leading to a recommendation to cease such claims, which could damage brand credibility.
- Significant Stock Decline: Following the misleading ad ruling, Freshpet's stock plummeted from $75.37 on March 16 to $67.42 on March 17, representing a nearly 11% drop, indicating market concerns about the company's future prospects.
- Investor Rights Affected: The stock decline due to the advertising issue has resulted in substantial financial losses for Freshpet investors, prompting Kessler Topaz Meltzer & Check to investigate potential violations of federal securities laws to safeguard investor rights.
- Legal Consultation Opportunity: KTMC encourages affected Freshpet investors to reach out for legal advice regarding their rights, demonstrating the firm's commitment to supporting and protecting investors' interests.
See More
