New FTC Guides for Endorsements and Testimonials

The Federal Trade Commission (FTC) has finalized a number of revisions to their Guides Concerning the Use of Endorsements and Testimonials in Advertising, which go into effect December 1, 2009. These additions and revisions cover endorsements by consumers, experts, organizations, celebrities, and the disclosing of the connection between the advertiser and endorser. Below is a brief summary of the revisions.

Consumer Testimonials

Ads that imply an individual's experience with the product is typical, when it is not, must clearly disclose the results that consumers can generally expect. Before this revision, advertisers were allowed to show any testimonial (i.e., I lost 5 pounds a week on this diet and didn't even exercise!) as long as they included a disclaimer such as, "results not typical." This caveat is no longer sufficient.

The advertiser must have adequate substantiation, such as scientific evidence, to support claims made in testimonials in the same way it would be required to do so if the ad made the claim directly without the use of testimonials.

Material Connections

The new Guides has new, additional examples about material connections between advertisers and endorsers. Bloggers making endorsements must now disclose any material connections they have with the product.

If the advertisement refers to research that was sponsored by the company doing the advertising, the advertisement must disclose the connection between the advertiser and the research organization.

Paid Endorsements

Any endorsement that makes a false or misleading claim is deemed to be deceptive. In addition to the advertiser, endorsers may also be liable for the statements made. This is true for claims, such as "clinically proven," that are based on studies that are so flawed in design and conduct that their conclusions have no validity. In these cases, the endorser is subject to liability for false statements, and the advertiser is liable for misrepresentations made through the endorsement.

Celebrity Endorsers

Celebrity endorsers are now expected to disclose their relationships with advertisers when making any print and oral endorsement; this includes statements made on talk shows and in social media.

To get all the details and examples, you can download a copy of the FTC's document here.

FTC Publishes Final Guides Governing Endorsements, Testimonials, FTC Website

Guides Concerning the Use of Endorsements and Testimonials in Advertising, http://www.ftc.gov/os/2009/10/091005revisedendorsementguides.pdf