Advertising Law Alerts

June 23rd, 2010

FTC Posts Endorsement Guides FAQs

Recently, the Federal Trade Commission released answers to frequently asked questions about its Guides Concerning the Use of Endorsements and Testimonials in Advertising. These FAQs provide helpful additional guidance regarding the FTC’s revisions to the Guides.

Key issues addressed by the FAQs include:

  • The FTC reemphasized its concern that when free products are provided to bloggers, it often creates a material connection between the blogger and the advertiser that requires disclosure;
  • While the FTC believes that there should generally be disclosure when free products have been provided to bloggers and others posting content on social media pages, the FTC does not think that additional disclosure is generally required in traditional media or websites with similar content;
  • Even if an individual’s Facebook page identifies his or her affiliation with a company, the FTC recommends that the individual still disclose the affiliation whenever talking about the company’s products;
  • If a celebrity is a well-known spokesperson for a product, the celebrity should nevertheless disclose his or her relationship with the advertiser when posting content about the product if a significant number of the readers are not aware of the affiliation;
  • The FTC believes that a single disclosure on a home page that products discussed on the site are provided for free, or a button that says "Disclosure" or "Legal," is not sufficient to inform readers about a connection between the writer and the advertiser;
  • On Twitter, disclosures such as "#paid ad" or even "#paid" or "#ad" may be effective; and
  • Advertisers should have reasonable programs in place to train and monitor members of their social media marketing networks, including explaining what can and cannot be said about their products.

 

If you have any questions about the recent the FTC’s announcement, contact Jeffrey A. Greenbaum at (212) 826 5525 or jgreenbaum@fkks.com, or any member of Frankfurt Kurnit Advertising Group.

Disclaimer. This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.