What are the laws that govern advertising, endorsements and reviews in e-commerce?

In California, businesses engaging in e-commerce must comply with laws that govern advertising, endorsements, and reviews. Advertising is regulated by the California Business and Professions Code. This code includes specific regulations regarding how ads should be presented, including the fair practice of avoiding false or misleading representation. Additionally, California law prohibits ads that attempt to unfairly advantage one person over another. Endorsements in e-commerce are regulated by the Federal Trade Commission (FTC). The FTC requires that endorsements be truthful and non-misleading. Companies may not pay people to endorse their products or services in a misleading manner, such as by falsely claiming that the endorser uses the product. Endorsements must also disclose any material connections between the endorser and the company, such as a financial relationship. Reviews are also subject to FTC regulations. Reviews must be genuine and accurately represent the product. Companies may not pay people to create reviews or post positive reviews in exchange for compensation. Additionally, companies may not post positive reviews about their own products or services without disclosing that the reviews were written by employees or affiliates of the company. These laws exist to protect consumers from being deceived or misled by false or exaggerated advertising and reviews. When engaging in e-commerce, businesses must be sure to adhere to the laws governing advertising, endorsements, and reviews in order to stay compliant.

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What are the laws that govern advertising, endorsements and reviews in e-commerce?

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