FTC PUBLISHES NEW GUIDLINES: “RESULTS NOT TYPICAL”

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 6, 2009 -- FTC PUBLISHES NEW GUIDLINES: “RESULTS NOT TYPICAL”

By Shannon L. Van Dorn, Esq.
October 5, 2009

Guidelines regarding the use of testimonials and endorsements (including bloggers) are sure to send a buzz through the direct marketing community. The Federal Trade Commission announced today that it has approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act.

In a nutshell, to better protect the public, the FTC is advocating for more disclosure to the consumer in several areas of advertising. Advertisers featuring testimonials that claim extraordinary results can no longer throw up a disclaimer that the “results are not typical.” The new guidelines mandate that testimonials reflect typical results, instead of the relied upon atypical results with disclaimers. Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect.

The revised Guides are also adding new guidelines for the first time regarding the popular internet marketing tool of “blogging.” Bloggers (for pay or other compensation) now may considered endorsements and, as such, are considered a “material connection” between advertiser and endorser – a connection that consumer would not expect – and such connection must be disclosed. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement.

Celebrity endorsements also are addressed in the revised Guides. Both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement – or for failure to disclose “material connections” between the advertiser and endorsers. Therefore, according to the new guidelines, celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media.

The guides are not binding law, but rather interpretations of law that hope to help advertisers comply with regulations. Violating the rules, which take effect Dec. 1, 2009, could result in various sanctions including a lawsuit.

More information can be found here: http://ftc.gov/opa/2009/10/endortest.shtm

Shannon Van Dorn is a direct response and advertising attorney at Van Dorn & Marshak Law Offices located in Los Angeles. www.labizlaw.com. 1-866-661-8442 ext. 2.