In a recent development, the National Advertising Review Board (NARB) has given the Federal Trade Commission (FTC) an opportunity to apply its newly issued Endorsement Guides for the first time. This opportunity has come about in context of a dispute between Smile Direct Club (SDC) and Smile Prep.
Smile Prep operates a website that offers reviews of clear aligners, popularly known as “invisible braces”. Their reviews are based on their proclaimed “extensive five-point analysis”. Smile Prep’s sole income is generated through commissions from some of the companies it reviews.
According to the report, SDC raised an objection with the National Advertising Division (NAD), arguing that Smile Prep “slants its rankings and reviews to favour those companies that make payments to it at the relative expense of those companies that don’t.” SDC’s contention raises significant questions about endorsements, commissions, and their influence over rankings and reviews. With these matters now under review by the NARB and FTC, this could set a precedent about the impartiality of reviews, especially for websites that solely rely on commissions.
The implications can be significant for law firms and corporations that deal with endorsements and advertising, especially in the digital space. An eye must be kept on how this situation evolves under the FTC’s review, as the outcomes could potentially reshape advertising and promotion strategies in the internet age.