What are the FTC rules on endorsements and testimonials?
The Federal Trade Commission (FTC) rules on endorsements and testimonials require that marketers be honest and truthful in their advertising. The FTC Act of 1914 states that endorsements must reflect the honest opinions, findings, beliefs, or experiences of the endorser. When an endorser is providing an endorsement or testimonial, it has to reflect their true experience with the product or service. They cannot be given incentives or payments in exchange for their endorsement. Any payments or benefits are required to be disclosed. The FTC also requires that endorsements reflect the typical results that consumers will receive when they use the specific product or service. As such, endorsers must not use exaggerated or false claims when talking about the product or service in order to entice potential customers. The FTC also requires endorsers to disclose any material connection with the advertiser of the product or service they are endorsing. Such connections could include investment in the company, past or present employment, or an existing professional relationship with the company. Above all, advertisers should bear in mind that the main purpose of the FTC rules is to ensure that all endorsements and testimonials are honest and truthful. Advertisers must comply with the FTC rules in order to avoid legal action against them.
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