Automotive

New FTC Ad and Endorsement Rules

Leave it to the FTC to say “Keep Not Lying” with a 10K word document.
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New FTC Ad and Endorsement Rules

The Federal Trade Commission (FTC) recently released its updated Endorsement Guides. The revised guidelines, which seek to protect the truthfulness of endorsements, were last modified in 2009, with proposed updates made in May 2022 to accommodate changes in social media use and online reviews. As with any FTC guidelines, simply following them isn't enough; you could be asked to prove you are following them, so here is a breakdown of what is expected. 

  1. 🤥 Truthfulness and Non-Misleading Endorsements: Ensure that all endorsements represent the honest opinions of the endorser. 
  2. 🪟 Disclosure of Connections: If there's a connection between the endorser and marketer, make sure it is clearly disclosed.
  3. 👍 Handling Exceptional Results: If an endorsement claims above-average results, clarify the generally expected results.
  4. ⭐️ Avoid Manipulation of Reviews: Do not manipulate consumer reviews to distort public perception of a product.
  5. 😉 Manage Incentivized and Employee Reviews: Have clear and disclosed guidelines on incentivized reviews and reviews by employees. 
  6. 🪖 Combat Fake Reviews: Do not create fake negative reviews of competitors.
  7. 📖 Understand the Definition of 'Endorsements': Be aware that endorsements now include fake reviews, virtual influencers, and social media tags.
  8. 📱 Proper Disclosures on All Platforms: Ensure influencers disclose material connections across different platforms according to the FTC guidelines.
  9. ⏳ Continuous Updating of Endorsement Practices: Regularly update your endorsement practices based on the FTC's evolving guidelines and ensure your team and endorsers are trained in these changes.
  10. 🧑‍🍳 Cater to All Media: Ensure your advertising complies with the FTC guidelines across all forms of media, traditional and digital.
  11. 🎥 Engage in Regular Monitoring: Regularly monitor brand endorsements to ensure they align with the FTC's guidelines.
  12. 📋 Be Prepared for FTC Evaluation: Remember that the FTC evaluates potential violations of the FTC Act on a case-by-case basis. The primary focus is on advertisers and their ad agencies and PR firms.

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