Can you explain the new FTC rules concerning the use of endorsements and testimonials in advertising?
This law governs endorsements by consumers, experts, organizations and celebrities. It also requires endorsers to disclose any financial benefit from the endorsement. Specifically the law states the following:
1. When an advertiser uses a consumer’s testimonial to describe the results of his or her use with the product or service, the results must be typical of all consumers using the product. Let’s use an anti-aging cream as an example. If 80 percent of users of the cream experience firmer skin within 10 weeks and only 20 percent experience firmer skin within four weeks, an advertiser cannot use the results for 20 percent in the advertisement.
2. The rules also emphasize that material connections between advertiser and endorser must be disclosed to the consuming public. The Federal Trade Commission stressed that when bloggers or other word-of-mouth marketers — which includes other forms of social media — talk about their experience with a product or service, they must disclose whether they received compensation or free products or services for their endorsement.
3. When paid endorsements regarding a product or service are made, they must not be false or misleading. Basically, if you are paid to talk about the product or service and it does not live up to its claim, you cannot state otherwise.
4. Lastly, any celebrity endorsement must disclose any connection to the advertiser whether traditional media or social media.
What does this mean for bloggers?
This law will make bloggers and users of social media very transparent about the product or services they endorse. This is a good thing for the consumers and the bloggers. Consumers trust bloggers more and this trust could lead to more followers.
Latoicha Givens is the founder and a member of the firm Phillips Givens, LLC www.iplaw101.com.
Click here to learn more about the FTC Act https://www.ftc.gov/opa/2009/10/endortest.shtm
Marian Anderson is a travel and lifestyle writer and creator of Haute Travels Blog hautetravels.blogspot
