In recent updates, the U.S. Federal Trade Commission (FTC), has overhauled their Guides Concerning the Use of Endorsements and Testimonials in Advertising (JD Supra).
The Commission has produced these guides in an effort to provide administrative interpretations of rules around endorsements and testimonials in advertising, marketing, and various promotional messaging mediums. The guides are classified in Part 255 of Title 16 of the Code of Federal Regulations.
One of FTC’s duties includes providing insights into the legal principles it will use in the evaluation process of testimonials and endorsements. This helps to set expectations about the Commission’s views on undue influence, conflict of interest, and issues around fairness in advertising. These guidelines are critical for businesses and advertising professionals aiming to stay within the law.
Additionally, the FTC provides a list of frequently asked questions, which aids in clarifying the application and interpretation of the rules. This assists the advertising community and legal professionals in gaining a clearer understanding of the regulatory landscape.
The newly overhauled guidelines will be of note to legal professionals working in corporations and law firms alike. The updated regulations and the implications they carry have implications for anyone involved in marketing and promotional activities. Those working with endorsements and testimonials should familiarize themselves with the new rules.