The FTC revised guidelines that govern endorsements and testimonials by online contributors went into effect on 1/1/2010. The new guidelines require that all contributors or endorsers of a particular brand or service must disclose their relationship and any benefits they receive from the brand or service for their endorsements. For example, if you endorse a brand or service on your personal blog, social media accounts, or review sites, and receive any “material connections” this must be disclosed somewhere on the blog. As the FTC explains in a news release published before the new rules went into effect, “The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” 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 – like any other advertisement – is deceptive if it makes false or misleading claims.”
The new guidelines are to regulate and prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. If you are interested in reading mnore about the new guides check out below!
16 C.F.R. Part 255: Guides Concerning the Use of Endorsements and Testimonials in Advertising: Notice Announcing Adoption of Revised Guides
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