FTC Aims At Deceptive Endorsements: Beauty, Health Firms Can Assure They're Not Targets
US FTC sends notices to more than 700 companies about penalties they will face if they use deceptive endorsements and testimonials to promote their products. Industry experts discuss impact of surprising action and cautions to take in teaming up with influencers.
You may also be interested in...
If the commission does develop a rule, it would provide a vehicle for stronger enforcement in the area.
The Federal Trade Commission is leveraging other statutory authorities under the FTC Act and working with state regulators to garner monetary relief for consumers in the year since a Supreme Court decision shut down the commission’s longtime pathway for doing so under Sec. 13(b). FTC Bureau of Consumer Protection director Samuel Levine provided an update – and a warning to industry – at the NAD 2022 conference.
Proposed changes to the FTC’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising” depict an agency looking to crack down on fake reviews and suppression of negative ones, tighten its definition of “clear and conspicuous” disclosures, and clarify that advertisers, endorsers, intermediaries and platforms all can be held liable for their endorsement roles.