FTC Endorsement Guides: What People Are Asking (June 2023)

The FTC’s Endorsement Guides: What People Are Asking

June 2023

The Federal Trade Commission (“FTC”) issued updated guidance regarding its Endorsement Guides, which address the use of endorsements in advertising. The core principle behind the guides is ensuring that endorsements are truthful and not misleading, reflecting the honest opinions of the endorser. Importantly, if there is a connection between the endorser and the marketer—such as if the endorser is paid, a relative, or an employee of the company—it must be disclosed clearly to consumers, as this could affect their perception of the endorsement. For instance, if a reviewer is paid to promote a product or has received it for free, that relationship should be made known to the audience.

The FTC also highlighted concerns about misleading endorsements when exceptional results are shown. For example, if an endorser claims to have lost 20 pounds in two months using a product, but that result is not typical for most consumers, the ad must clarify the expected results for the average user. The guidance underscores that endorsements must not mislead consumers into thinking they will achieve the same results unless there is clear evidence to support such claims.

The updated 2023 guidelines also include clarifications on what constitutes "clearly and conspicuously" in disclosures, and they emphasize that advertisers and endorsers must be aware of how consumers understand and interpret these disclosures. Importantly, these guidelines do not provide a "safe harbor" from potential liability, as each case must be evaluated based on its specific facts.

The FTC encourages reading additional resources, such as Disclosures 101 for Social Media Influencers, to better understand the responsibilities regarding endorsements, especially in the context of social media and online reviews. The revised rules also cover areas like affiliate marketing, employee endorsements, and the obligations of advertisers regarding what others say about their products.

For more information, see here:  https://www.ftc.gov/business-guidance/resources/ftcs-endorsement-guides-what-people-are-asking

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