Changes Affect Testimonial Advertisements, Bloggers, Celebrity Endorsements<\/p>\n
The Federal Trade Commission today announced that it has approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act.<\/p>\n
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The notice incorporates several changes to the FTC\u2019s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980.<\/p>\n
Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides \u2013 which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as \u201cresults not typical\u201d \u2013 the revised Guides no longer contain this safe harbor.<\/p>\n
The revised Guides also add new examples to illustrate the long standing principle that \u201cmaterial connections\u201d (sometimes payments or free products) between advertisers and endorsers \u2013 connections that consumers would not expect \u2013 must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other \u201cword-of-mouth\u201d marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement \u2013 like any other advertisement \u2013 is deceptive if it makes false or misleading claims.<\/p>\n
Celebrity endorsers also are addressed in the revised Guides. While the 1980 Guides did not explicitly state that endorsers as well as advertisers could be liable under the FTC Act for statements they make in an endorsement, the revised Guides reflect Commission case law and clearly state that both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement \u2013 or for failure to disclose material connections between the advertiser and endorsers. The revised Guides also make it clear that celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media.<\/p>\n
The Guides are administrative interpretations of the law intended to help advertisers comply with the Federal Trade Commission Act; they are not binding law themselves. In any law enforcement action challenging the allegedly deceptive use of testimonials or endorsements, the Commission would have the burden of proving that the challenged conduct violates the FTC Act.<\/p>\n
The Commission vote approving issuance of the Federal Register notice detailing the changes was 4-0. The notice will be published in the Federal Register shortly, and is available now on the FTC\u2019s Web site as a link to this press release. Copies also are available from the FTC\u2019s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.<\/p>\n
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC\u2019s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC\u2019s Web site provides free information on a variety of consumer topics.<\/p>\n","protected":false},"excerpt":{"rendered":"
Changes Affect Testimonial Advertisements, Bloggers, Celebrity Endorsements The Federal Trade Commission today announced that it has approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[256,491,506,570,1320],"class_list":["post-202","post","type-post","status-publish","format-standard","hentry","category-blogum","tag-blogger","tag-endorsment","tag-ethics","tag-ftc","tag-testimonials"],"yoast_head":"\n