What are the FTC rules on endorsements and testimonials?
The Federal Trade Commission (FTC) enforces rules and regulations against false and deceptive advertising in the United States. This includes endorsements and testimonials. In Texas, the FTC requires endorsers and endorsers of products or services to be truthful and non-misleading in their statements about the product or service. The FTC Endorsement Guides state that endorsers must be honest and transparent about the connection they have with the company or product being endorsed. Endorsers must disclose any connection or relationship regardless of whether or not they are receiving compensation for their endorsement. In addition, endorsers or people providing testimonials must not be making false or misleading statements about the product. Endorsers must also provide references, substantiation, or other evidence to support any claims they make. Finally, the company responsible for the endorsement or testimonial must have a reasonable basis for any claims about the product or service being endorsed. If a company cannot provide evidence to support the claims made by their endorsers, then the company may be subject to penalties and other audits from the FTC.
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