FTC Closes in on Updates to Endorsement Guidelines

The Commission renews focus on manipulated reviews, online endorsements and child-targeted advertising

By:  Stephanie Ramirez

Whether it’s fake reviews or influencers who hide that they were paid to post, this kind of deception results in people paying more money for bad products and services, and it hurts honest competitors. — Samuel Levine, Director of Bureau of Consumer Protection, FTC

In its continued effort to crack down on false and misleading advertising, the Federal Trade Commission (FTC) is once again seeking public comment on whether to make changes to its Endorsement Guides. This comment period comes just two years after the previous call for public input.

The Endorsement Guides, 16 CFR Part 255, established in 1980 and amended in 2009, provide guidance to businesses and others to ensure that advertising using endorsements or testimonials is truthful. The Guides state, among other things, that advertisers need to be up front with consumers and clearly disclose unexpected material connections between endorsers and a seller of an advertised product. The FTC advises companies to familiarize themselves with FTC guidelines in order to stay in compliance.