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

In South Dakota, e-commerce laws that govern advertising, endorsements and reviews are established and enforced by the U.S. Federal Trade Commission (FTC). These laws are designed to ensure that all advertising, endorsements, and reviews are truthful and conform to specific standards of accuracy. For advertising, endorsers must clearly state their relationship with the product or service they are advertising. Endorsers are also required to disclose if they were provided any payment or incentive to promote the product. When it comes to reviews, the FTC requires that the reviewer provide an accurate account of their experience and cannot be swayed by any incentives or payments provided to them by the business or individual they are reviewing. Additionally, businesses are not allowed to edit or delete reviews, even if the reviews are negative or contain sensitive information. To ensure that businesses maintain compliance with these e-commerce laws, the FTC offers full-service educational materials such as webinars, self-assessment tools, and model contracts for review. All businesses that engage in online advertising, endorsements or reviews should review the FTC’s laws and policies thoroughly, to ensure that they are conforming to the proper standards of accuracy and disclosure.

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