NAD reviews discount claims. LinkedIn Facebook X Although we've seen a steady stream of litigation in recent years focusing on how companies advertise sales, sales haven't been a hot topic in NAD cases. Last week, however, NAD announced a decision involving Guardian Bikes' sale practices. Notably, the case was initiated by NAD itself, rather than a competitor, suggesting that we may see more of these cases in the future. NAD's inquiry focused on claims such as "40% OFF All Bikes," "You've Got 40% OFF," and "Sale Ends In" followed by a countdown timer. NAD also reviewed strike-through pricing that compared a current price to a higher reference price. Guardian's bikes were generally advertised at prices that were roughly 40% below a "Comparable Value" benchmark derived from competitor pricing, rather than 40% below Guardian's own former prices. One issue was whether consumers would reasonably interpret the ads to mean that Guardian was temporarily discounting its bikes by 40% from its regular selling prices. NAD was concerned that consumers could take away that message, particularly when the ads paired "40% off" savings claims with limited-time sale language and countdown timers. NAD's concern was amplified by a Memorial Day promotion during which consumers could get free accessories with the purchase of a bike. NAD noted that the bike prices appeared to remain at Guardian's everyday prices while the limited-time offer related only to the accessory bundle. Nevertheless, messages such as "40% off" plus "free accessories" could create the impression that the discount was also temporary. NAD was also troubled by the use of consecutive countdown timers that appeared to promote the same offer over an extended period. According to the decision, Guardian used back-to-back countdown clocks during the promotion, creating a continuing sense that the sale was about to end. NAD questioned whether that approach could communicate an unsupported sense of urgency. Guardian voluntarily agreed to modify its practices. Among other changes, it agreed to clarify that its "40% off" messaging reflects an everyday comparison to competitor pricing, not a temporary markdown from Guardian's own regular prices. It also agreed to better distinguish limited-time promotions from its ongoing comparable-value pricing model and to ensure that countdown timers clearly identify the promotion being offered. NAD treated those modifications as though they had been formally recommended and accepted. For marketers, the takeaway is straightforward: if your "sale" price is really your everyday price, be careful how you describe it. And if a countdown timer is counting down to an offer that looks a lot like the one that expired yesterday, NAD may start asking whether consumers are really getting a limited-time deal or just a limited-time illusion. The consequences could be worse if a plaintiffs' attorney, rather than NAD, asks those questions. DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising. (C) Kelley Drye & Warren LLP 2026 Help shape our research. Are you... * a law firm C-suite leader? * general counsel/inhouse legal? or * a recent lateral attorney hire? Share your lateral move experience in our confidential 8-minute survey.

Guardian Bikes update after Shark Tank: success story continues. Guardian Bikes, a company focused on making safer bicycles for kids, gained attention after appearing on Shark Tank in 2016. The founders pitched their innovative SureStop braking system, designed to prevent dangerous head-over-handlebar accidents. Since their Shark Tank appearance, Guardian Bikes has grown into a successful business with annual revenue approaching $100 million. The company's journey from startup to thriving enterprise showcases the power of a good idea backed by passionate entrepreneurs. Guardian Bikes continues to prioritize safety and innovation in children's bicycles. They've expanded their product line while staying true to their core mission of keeping kids safe while riding. Key takeaways. * Guardian Bikes secured a deal with Mark Cuban on Shark Tank for their safety-focused children's bicycles * The company's SureStop braking system aims to prevent common biking accidents * Guardian Bikes has experienced significant growth since their TV appearance, nearing $100 million in annual revenue Company background. Guardian Bikes started with a focus on making cycling safer for kids. The company's founders had a clear mission and worked hard to grow their business. Founding and mission. Brian Riley and Kyle Jansen started Guardian Bikes. They wanted to make bikes that were safer for children to ride. The two entrepreneurs came up with a special braking system. This system helps stop kids from flying over the handlebars. Guardian Bikes' main goal is to prevent bike accidents. They put safety first in all their designs. The company makes bikes for children of different ages. Each bike is built to be easy for kids to control. The rise of Guardian Bikes. Guardian Bikes grew quickly after it started. More parents learned about their safer bikes. The company's innovative braking system got a lot of attention. In 2016, Guardian Bikes got a big break. They were on the TV show Shark Tank. This helped many more people learn about their bikes. After the show, sales went up a lot. The company keeps growing today. They sell thousands of bikes each year. Guardian Bikes is known for putting safety first. They keep working on new ways to make biking safer and more fun for kids. Shark Tank appearance. Guardian Bikes made a big splash on Shark Tank. The founders pitched their innovative children's bikes to the sharks and landed a deal. Their appearance led to major growth for the company. Pitch and investment. Brian Riley and Kyle Jansen entered the Shark Tank seeking $500,000 for 10% equity in Guardian Bikes. They showed off their kids' bikes with a special braking system. The sharks were impressed by the safer design. Mark Cuban took interest right away. He saw potential in the company's mission to make biking safer for kids. After some back-and-forth, Cuban made an offer. He wanted 15% equity instead of 10%. The founders agreed to Cuban's terms. They left with a $500,000 investment and a famous business partner. It was a big win for Guardian Bikes. After the Tank. Guardian Bikes grew quickly after Shark Tank. The TV exposure brought in lots of new customers. Sales went up fast. Mark Cuban helped with more than just money. He gave advice on marketing strategy and business growth. This guidance was key to the company's success. In a later Shark Tank update, Cuban said Guardian Bikes was on track to become a $100 million company. That's huge progress from where they started. The founders' dream of making biking safer for kids was coming true in a big way. Product innovation. Guardian Bikes stands out for its focus on safety and creative bike design. The company has developed special features to help kids ride more safely and easily. SureStop brake system. Guardian Bikes' biggest innovation is the SureStop brake system. This clever braking method makes stopping much easier for young riders. With SureStop, kids only need to squeeze one brake lever. The bike then stops smoothly using both wheels. This system helps prevent accidents where kids might flip over the handlebars. It's especially useful for new riders who are still learning bike control. The SureStop technology has made Guardian Bikes known as some of the safest bikes for children. Safety and design. Beyond the brakes, Guardian Bikes puts a lot of thought into making their bikes safe and fun. They design their bikes to fit kids well. This good fit helps children feel more in control while riding. The company also focuses on making their bikes lightweight. Lighter bikes are easier for kids to handle. This can help boost confidence for new riders. Guardian Bikes uses bright colors and cool designs too. These fun looks help get kids excited about biking. By mixing safety with fun designs, Guardian Bikes aims to make learning to ride enjoyable and worry-free for both kids and parents. Manufacturing and production. Guardian Bikes has made big changes to how and where they make their bikes. They moved production to the United States and improved their methods. This shift brought new jobs and better quality control. Quality control. Guardian Bikes takes bike safety very seriously. They check each bike carefully before it leaves the factory. Workers inspect every part to make sure it meets high standards. The company uses special tools to test the brakes and frame strength. They also do test rides to check how the bikes handle. This careful process helps keep kids safe on Guardian Bikes. Quality control got even better when production moved to the US. The team can watch over every step more closely now. Location and expansion. Guardian Bikes now makes its products in Seymour, Indiana. This was a big move from making bikes overseas. The company picked Indiana because it's in the middle of the country. This makes it easier to ship bikes all over the US. The new factory created jobs for people in Seymour. It also lets Guardian Bikes grow and make more bikes. They can react faster to what customers want now. Moving to the US was a bold step. It shows Guardian Bikes wants to support American manufacturing. The company raised $3 million to help with this big change. Market presence. Guardian Bikes has made a significant impact in the children's bicycle market since appearing on Shark Tank. The company's focus on safety and innovation has helped it carve out a unique position among competitors. Sales and revenue. Guardian Bikes has seen impressive growth in sales and revenue. After their Shark Tank appearance, the company's sales skyrocketed. They went from $95,000 in sales in just seven months to projections of $350,000 by year's end. The company's success didn't stop there. Guardian Bikes continued to expand its market reach. Their commitment to providing a safer biking experience for kids resonated with parents. This led to increased demand for their products. Guardian Bikes offers various models at different price points. Their single-speed bike sells for $319, while their more advanced models go up to $419. This range allows them to cater to different customer needs and budgets. Competitive edge. Guardian Bikes stands out in the bicycle market due to its innovative SureStop braking system. This technology helps prevent accidents caused by sudden braking, giving them a unique selling point. The company's focus on safety has struck a chord with parents. Guardian Bikes offers peace of mind, which is a powerful motivator in the children's product market. Their bikes come 99% assembled, making them convenient for busy families. This feature, combined with their safety innovations, gives Guardian Bikes a strong competitive edge. The company has also evolved since its Shark Tank appearance. They've moved towards sustainable success, showing their ability to adapt and grow in the changing market landscape. Customer engagement. Guardian Bikes takes customer engagement seriously. They focus on educational programs and community events to promote bike safety and create a safer biking experience for kids. Educational initiatives. Guardian Bikes runs safety programs in schools. They teach kids about bike safety rules and how to ride safely. The company gives out free helmets to students who take part. They also made a fun safety video for kids to watch. Guardian's website has tips for parents on choosing the right bike size. They explain how their SureStop brake system works to prevent accidents. The company shares stories from real families about how their bikes have made biking safer for their children. Community and events. Guardian Bikes takes part in local bike rodeos and safety fairs. At these events, kids can try out Guardian bikes and learn about bike safety. The company partners with cycling clubs to host group rides for families. They sponsor biking events for kids in different cities. These events mix fun and education about bike safety. Guardian Bikes also works with schools to set up bike-to-school programs. This helps kids stay active and learn to bike safely. The company uses social media to share biking tips and safety reminders. They post pictures of happy kids on Guardian bikes to build a sense of community among their customers.