Friday, November 20, 2009

FTC Changes Advertiser Rules for Endorsements and Testimonials

This December, advertising and marketing will become more uncertain for many businesses. That is because the FTC is changing 30 year old rules on advertising with regard to endorsements and testimonials. The changes relate to transparency in disclosing real material connections between the advertiser and endorsers. This extends to internet marketing and the recent explosion in blogger rating and blogger testimonials for consumer products. Celebrity endorsers also face personal liability for the first time. Furthermore, important safe harbors such as "results not typical" no longer exist.

How the FTC chooses to enforce these new rules remains uncertain. However, internet marketers, advertisers, bloggers and celebrity endorsers need to retain a top FTC compliance lawyer to review all marketing materials before any new campaigns go live.


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udagarseo said...

Remember that the FTC (United States Federal Trade Commission) is trying to control some of the madness and sales hype that goes on unchecked over the Internet. Unfortunately, it also affects the majority of ethical marketers as well.

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