The Federal Trade Commission (FTC) has recently finalized updates to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (Guides). The revisions come as part of the FTC’s ongoing effort to provide accurate and clear direction on how truth-in-advertising standards, under the Federal Trade Commission Act, apply to endorsement and review-related issues. This is particularly relevant for influencers, as well as companies managing consumer review programs.
Given the pervasiveness of influencer marketing, these updated regulations will likely have considerable impact on corporate advertising practices. They also underline regulator observance of the swiftly shifting dynamics of the advertising industry and the ever-growing influence of digital media.
More on these updates, including precise details on how they affect endorsements, testimonials, and consumer reviews, has been provided by Perkins Coie.
As legal professionals, it’s vital to remain aware of these changes to ensure regulatory compliance in our firms and the organizations we represent. Detailed understanding of these guidelines can help us navigate the complexities that often accompany evolving advertising standards in our increasingly digital marketplace.