New Rules Affecting Endorsements and Testimonials in Advertisements
Do advertisements like this sound familiar?
“I lost 30 pounds in 1 month using XYZ product!”
*Your results may vary.
You will no longer hear or see these types of advertisements under the revisions to the Federal Trade Commission’s (“FTC”) Guides (“Guides”) Concerning the Use of Endorsements and Testimonials in Advertising, which went into effect on December 1, 2009.
The Guides address endorsements of products and services by consumers, experts, organizations and celebrities and how such advertisements must comply with the FTC Act regarding use of endorsements and testimonials in advertisements. This is the first time that the Guides have been revised since 1980! With the Internet and the explosion of social media, the new FTC Guides are long overdue.
It is important to note that the Guides are administrative interpretations concerning the application of the FTC Act and are not law. Therefore, compliance with the new Guides does not mean that you are complying with the law. And non-compliance with the Guides does not mean that you are violating the law, which would subject you to fines and penalties under the FTC Act.
Needless to say, the Guides do provide important guidance on how best to comply with the law regarding use of endorsements and testimonials in advertisements. One of the biggest changes in the Guides is that you can no longer use the “your results may vary” safe harbor disclaimer in your advertisements. Another big change is that you must disclose any material connection between the advertiser and the endorser.
The Guides also incorporate specific requirements for bloggers. Bloggers must now disclose whether they receive any compensation (gifts or money) in return for blogging about a product.
There are many articles and blogs on the Internet that explain the FTC Guides and provide advice on how advertisers who use endorsements and testimonials can comply with the law. The publication found at FTC Guides provides many examples that may address your specific situation.
Also, Creative Business Lawyer, Kevin Houchin, has a great article on his website. However, the best advice I can give is to contact your attorney to ensure that you take the appropriate steps to comply with the rules.
Posted in Uncategorized | 2 Comments »
Internet based wow
Great one. Thanks and favorited.