Updated FTC Guidelines Keeps Advertisers On Their Toes

In May 2015, the Federal Trade Commission released new updates to its Endorsement Guides affecting marketers and promoters. Partner Karl Kronenberger authored the article “Endorsements, Reviews, and Astroturfing: New FTC Guidance for Marketers,” published by MarketingProfs.com, discussing the impact of these updated guidelines and the issues marketers should be aware of, such as buying “likes” on Facebook.

The FTC updates provide much more guidance on advertising disclosure methods required for marketers and promoters on social media. Mr. Kronenberger explains that both marketers and consumers must disclose in consumer posts and tweets if any payment or other incentive was provided to a consumer. Additionally, employees of retailers and manufacturers may not create consumer reviews without revealing their connection to the retailer.

“The above rules are in flux and can be subjective, especially in determining whether notice by a marketer is ‘clear and conspicuous’ under FTC rules. However, marketers can protect themselves against the risk of penalties or FTC enforcement action by implementing a robust compliance program and take swift action to remedy any violations detected,” commented Mr. Kronenberger.

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