FTC Guidelines on Endorsements & Testimonials
I’m pleased to share the following guest post by Ellie Hempleman, Marketing/Communications Specialist @ Park National Bank, on FTC updates that affect advertiser and blogger disclosure. Special thanks to Central Ohio PRSA for this great educational luncheon.
December 1, 2009 marked the day the Federal Trade Commission (FTC) implemented its new “Guides Concerning the Use of Endorsements and Testimonials in Advertising.” The guides address endorsements by consumers, experts, organizations, and celebrities, plus the disclosure of important connections between advertisers and endorsers. The FTC spent two years making these revisions, so it’s safe to say they’ll be more vigilant about cracking down on those who fail to comply.
Why the Revision…
Quite simply, the document was getting stale and the update was long overdue. The previous version had not been touched for 20+ years and the guides weren’t developed to include trends such as Internet advertising, viral marketing or consumer blogs.
As our media environment continues to morph and social media ramps up in intensity, advertisers no longer fully control the endorsements being made. It’s becoming easier for regular consumers and celebrities to make off-the-cuff comments about products or companies – intentionally or inadvertently. Because of this, the FTC implemented changes to the guides to continue protecting consumers from false and misleading advertisements.
Endorsement vs. Testimonial…
In the past, a celebrity made an endorsement and an average consumer made a testimonial. Now, the term endorsement is practically synonymous with testimonial. The FTC defines an endorsement as any advertising message that consumers are likely to believe reflects the opinions, beliefs, findings or experiences of a party other than the sponsoring advertiser, even if the views expressed are identical to those of the sponsoring advertiser.
What Changed…
1. Results not typical disclaimers (Think Weight Watchers, Subway, etc.)
- “Results not typical” is no longer a safe harbor, especially for weight-loss messages
- Advertisements now have to be substantiated and disclose what the typical result is for the average consumer
2. Disclosure of material connections
- The connection (payment, free products) between the endorser and company must be identified.
- Disclosure is only necessary when the comment could influence a consumer’s opinion, positively or negatively.
- Example: Lance Armstrong partnered with FRS Healthy Energy to promote their energy drink. If he talks about this supplement on Oprah, he has to explain he’s a paid endorser. Two ways to accomplish this: the disclaimer can be in the end credits, or the endorser can weave into conversation that he is endorsing the product. The same thing applies to Twitter or Facebook messages; the connection must be disclosed either in the person’s profile or directly in their comment (Most celebrities aren’t doing this…yet).
3. Liability of advertisers
- Advertisers and endorsers are both liable for false/misleading/unsubstantiated claims.
- It is the endorser’s responsibility to make sure the message they are delivering is accurate, and to disclose their material connection to the product or company they’re endorsing.
Proceed with Caution…
If you, as a consumer, blog about the great cup of coffee and outstanding service you received at your neighborhood Starbucks on your way to work, you’re indirectly endorsing the product. If Starbucks sees your message and sends you a coupon to say thanks, you’re not liable. You become a sponsored endorser when Starbucks reaches out and asks you to talk about or review their product in exchange for free coffee – now you’re responsible for disclosing the relationship.
An easy way to protect yourself is to add a “Terms of Use” page to your blog outlining that you are not a professional or expert and aren’t affiliated with the companies mentioned in your blog. That’s also where you can include the products or companies you do endorse or support and whether or not you are paid for those messages. You can get a free disclosure policy from www.disclosurepolicy.org.
Quick Reminder…
While it’s in your best interest to comply with the guidelines, remember they are advisory in nature – not law – and they don’t always apply. You be the judge.
For a complete copy of the new guide, go to: http://www2.ftc.gov/os/2009/10/091005revisedendorsementguides.pdf
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ppv marketer on March 9, 2010 @ 11:11 pm
A lot of marketers are overlooking this very important new regulation. Well done on reminding us all to not use fake flogs and bogus testimonials, there are far better ways to promote products and services