It still depends on an evaluation of whether the tool clearly and conspicuously discloses the relevant connection. If the advertiser doesn’t have proof that the endorser’s experience represents what people will generally achieve using the product as described in the ad (for example, by just taking a pill daily for two months), then an ad featuring that endorser must make clear to the audience what the generally expected results are. What about employees of an ad agency or public relations firm? For example, being entered into a sweepstakes or a contest for a chance to win a thousand dollars in exchange for an endorsement could very well affect how people view that endorsement. The FTC has expressed the opinion that under the FTC Act, product placement (that is, merely showing products or brands in third-party entertainment content – as distinguished from sponsored content or disguised commercials) doesn’t require a disclosure that the advertiser paid for the placement. Now suppose the person works for the company that sells the product – or has been paid by the company to tout the product. The Guides Concerning the Use of Endorsements and Testimonials in Advertising (Guides) issued by the Federal Trade Commission (FTC) address the application of Section 5 of the FTC Act (Unfair and Deceptive Acts or Practices) to the use of endorsements and testimonials in advertising. It depends on whether her followers understand that her tweets about products are paid endorsements. Where should the disclosure be? I’m under no obligation to talk about any knife and getting the knives as gifts really doesn’t affect my judgment. But we have several thousand people working here and we can’t monitor what they all do on their own computers and other devices when they aren’t at work. We pay and direct the influencers. My company makes a donation to charity anytime someone reviews our product. No. FTC Endorsement Guide. The FTC’s Endorsement Guides require a disclosure in a product endorsement if there is a “material connection” between an endorser and the manufacturer/marketer of a product. Is it ok if it’s at the end? Answers to questions people are asking about the FTC’s Endorsement Guides, including information about disclosing material connections between advertisers and endorsers. One of our company’s paid spokespersons is an expert who appears on news and talk shows promoting our product, sometimes along with other products she recommends based on her expertise. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). What do I have to disclose? If I respond via Twitter when I’m not officially working, do I need to make a disclosure? How to Disclose Sponsored Instagram Posts Using Hashtags 2. Having it at the beginning of the review would be better. Using these features to endorse a company’s products or services as part of a sponsored brand campaign probably requires a disclosure. Of course, no one should promote a link to your review that bypasses the beginning of the video and skips over the disclosure. The disclosures we are talking about are brief and there is no space-related reason to use a hyperlink to provide access to them. The FTC conducts investigations and brings cases involving endorsements made on behalf of an advertiser under Section 5 of the FTC Act, which generally prohibits deceptive advertising. They should not have to look for it. In that situation, it’s clear that you did not buy the product yourself – whether it’s a book or a car or a movie ticket. not convey the importance, nature, and relevance of the information to which it leads and it is likely that many consumers will not click on it and therefore will miss necessary disclosures. Because the Endorsement Guides were written in1980, they didn’t address social media. Do You Have to Disclose Free Gifts or Products? No money changes hands. A famous celebrity has millions of followers on Twitter. The social media platform I use has a built-in feature that allows me to disclose paid endorsements. I would prefer that recipients of my discount codes not have to disclose that they received discounts. You should make sure your public relations firm has an appropriate program in place to train and monitor members of its social media network. As the social strategy manager at a global technology company, one of the main topics that has been top of mind for me over the last 12-18 months is the FTC's Endorsement Guides. How to Disclose Sponsored Instagram Posts as a Partnership 3. Citing the massive change that social media and social media influencers have had on the way businesses interact with consumers, the FTC issued additional guidance in 2017 with their release of “ The FTC’s Endorsement Guides: What People Are Asking ”. When Does the FTC Act Apply to Endorsements? We tell them to be honest, whether it’s positive or negative. My Facebook page identifies my employer. A famous athlete has thousands of followers on Twitter and is well-known as a spokesperson for a particular product. With over 2.5 billion social media users worldwide, it is no surprise that social media marketing is booming and partnerships between brands and social media influencers (i.e. The Guides are intended to give insight into what the FTC thinks about various marketing activities involving endorsements and how Section 5 might apply to those activities. A single disclosure on your home page doesn’t really do it because people visiting your site might read individual reviews or watch individual videos without seeing the disclosure on your home page. Jack Holzknecht. The closer it is to your recommendation, the better. If you’re using endorsements that are a few years old, it’s your obligation to make sure the claims still are accurate. Getting a “sneak peek” of the game doesn’t even mean that you get to keep the game. Say a car company pays a blogger to write that he wants to buy a certain new sports car and he includes a link to the company’s site. If the endorser claims results from using a product that are far better than what the average consumer would achieve, then the ad has to be straightforward about the results that most people actually get. First, in an effort to provide additional guidance on its endorsement policies, the FTC again updated its Endorsement Guide (the “Guides”) frequently asked questions (“FAQs”). Having multiple disclosures during the video would be even better. Therefore, if you give free products to reviewers you should disclose next to any average or other summary rating that it includes reviewers who were given free products. The reason is obvious: Knowing about the connection is important information for anyone evaluating the endorsement. No. Do we need to make a disclosure? So a disclosure that simply said you got the app for free wouldn’t be good enough, but as discussed above, you don’t have to disclose exactly how much you were paid. – The FTC’s Endorsement Guides: What People Are Asking. First, it may be relevant to readers that people endorsing your restaurant on social media are related to you. We are thinking about distributing product discounts through various services that encourage reviews. All of our employees agree to abide by this policy when they are hired. 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