Attorney Steve® – IP and entertainment lawyer, discuss FTC Endorsement Rules for social media advertisers, promoters and endorsers. Failure to abide by the rules can lead to enforcement actions, and injured clients can sue for deceptive business practices.
The rules fall under FTC section 5 ("FTC Act") which requires truthful advertising. Some of the important take-a-ways are:
1. If you are endorsing a product, say so. Clear and conspicuous disclosure is required.
2. Use hashtags to make your role clear (#advertisement #paidtestimonial etc.)
3. If you are making scientific types of claims, it should be a SOUND SCIENCE (peer review and approved)
4. Be able to DOCUMENT and SUBSTANTIATE all claims being made
5. Do not use "Fake Polls" not based on any real science
6. Avoid "puffery" and exaggeration. If you have a great product or service, it will sell on its own.
7. "Actual customer" should be an actual customer
8. Review your ads (perhaps with legal counsel) to avoid any allegations of "deception." These cases will be resolved in favor of the reasonable consumer.
9. Disclose all business relationships
10. If you are NOTA BEING PAID (with money or free services), make clear that this is your OWN OPINION. Not being paid.
If you are an advertiser that needs help with social media celebrity endorsement contracts, call us at (877) 276-5084. We offer a free initial consultation. We are licensed to practice law in CA and AZ. ——————————————————————————————————————————–
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