Guides Concerning the Use of Endorsements and Testimonials in Advertising ... Federal Trade Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. June 22, 2020 Federal Trade Commission Office of the Secretary 600 Pennsylvania Avenue NW Suite CC-5610 (Annex B) Washington, DC 20580 Re: Endorsement Guides, P204500 Consumer Reports1 writes to respond to the Federal Trade Commission’s (“FTC” or “Commission”) request for comment2 on its Guides Concerning the Use of Endorsements and As I said, disclosure (and arguably common sense) is at the heart of these issues. 41-58, three sections of the 1972 proposal as final guidelines (16 CFR 255.0, 255.3 and 255.4) and republished three others, in modified form, for additional public comment. Specifically, this past month the FTC announced that it was formally seeking public comment on whether to make changes to the Endorsement Guides, with a notice in the Federal Register asking for submissions by April 21, 2020. CONTACT FOR CONSUMERS:Consumer Response Center877-382-4357, CONTACT FOR NEWS MEDIA:Jay MayfieldOffice of Public Affairs202-326-2656, STAFF CONTACT:Michael OstheimerBureau of Consumer Protection202-326-2699, Blog: Endorsement Guides: The FTC wants your feedback, Office of Equal Employment Opportunity and Workplace Inclusion, Reporting Fraud, Waste, Abuse or Mismanagement, What You Need to Know About the Office of the Inspector General, Companies and People Banned From Debt Relief, Statute, Rules and Formal Interpretations, Post-Consummation Filings (HSR Violations), Retrospective Review of FTC Rules and Guides, Other Applications, Petitions, and Requests, Magnuson-Moss Warranty Public Audit Filings, International Technical Assistance Program, Competition & Consumer Protection Authorities Worldwide, Hearings on Competition & Consumer Protection, List a Number on the National Do Not Call Registry, File Documents in Adjudicative Proceedings, systematic review of all current FTC rules and guides, The FTC’s Enforcement Guides: What People Are Asking, Statement of Commissioner Rohit Chopra Regarding the Endorsement Guides Review, 16 CFR Part 255: Guides Concerning the Use of Endorsements and Testimonials in Advertising; Request for Comments, FTC Seeks Public Comment on its Endorsement Guides. The FTC filed suit against Teami on March 6, 2020 in the District Court for the Middle District of Florida, alleging that Teami was liable under the FTC Act and the Guidelines. The comment deadline for Federal Trade Commission’s (FTC) recent request for public comment to inform planned revisions to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the Guides) has been extended to June 22, 2020. In fact, in the crucial under-25 consumer demographic, material connection disclosures have no effect on depressing response. According to FTC guidelines and enforcement letters, a material connection: The FTC simply requires the influencer to “clearly disclose any material connection” with any brand or product they’re promoting on social media. What’s central is the content itself: the post, the picture, or the video. The FTC jury is still out on this one. Native Advertising: A Guide for Businesses. By Ted Max on February 18, 2020 Posted in Endorsements, FTC Endorsement Guidelines.
The FTC applies the same rules to influencer marketing that they do to all other types of advertising: the influencer must disclose if they’re being compensated by the brands they’re promoting. The FTC is only concerned about endorsements that are made on behalf of a sponsoring advertiser. Commissioner Rohit Chopra issued a separate statement. Don’t get hung up in a thicket of rules or best practices. Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources. 0 Shares 0 Flares × If you are a business owner, you certainly want consumers to trust your brand, like your brand, and, ultimately, purchase from your brand. That depends on the medium. It could be that young consumers trust the influencer and brand more because they’re upfront about the material connection. It’s that simple. FTC endorsement guidelines require that influencers openly announce any relationship they may have with the advertiser. The influencer market on Instagram is expected to reach more than $2.5 billion in 2020. Last Updated On June 5th, 2020 by Dave Davies Category: Internet News, Legal, Social Media / 1 Comment. As a result, younger consumers tend to regard them more seriously than voluntary endorsements. In a Federal Register notice, the FTC is seeking comment on a wide range of questions, including: The Commission vote to approve the Federal Register notice was 5-0. It’s also gotten the attention of the Federal Trade Commission, the agency responsible for enforcing federal laws on advertising and promotions. The Endorsement Guides, formally known as the Guides Concerning the Use of Endorsements and Testimonials in Advertising, first enacted in 1980 and amended in 2009, provide guidance to businesses and others to ensure that advertising using endorsements or testimonials abide by the requirements of the FTC Act. The FTC’s Endorsement Guide addresses the application of Section 5 of the FTC Act (15 U.S.C. The FTC still went after them. Recent developments demonstrate the FTC’s continued interest in social media endorsements.. 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”). The updated FAQs … By Kimberly Lancaster | March 5, 2020 | Social Media. Many aspire to be influencers themselves. The audience may think the endorsement is voluntary and hence more believable. An endorsement How To Comply With The FTC's Endorsement Guidelines The FTC is asking for input on a wide … FTC Seeks Comments on Endorsement Guidelines March 2nd, 2020 Tweet . Guidance. The takeaway is that you must remember that all the laws and regulations governing advertising apply to influencer marketing. In December 1972, the Commission published for public comment proposed Guides Concerning the Use of Endorsements and Testimonials in Advertising, 37 FR 25548 (1972). As mentioned in Chopra’s statement, the Commission wants to review the current Endorsement Guidelines and is now seeking public comment: FTC Seeks Public Comment on Its Endorsement Guidelines. The FTC requires influencers to disclose their material connection to a brand: After the promotion contract or agreement has been completed. sponsored content from those pages was in compliance with FTC endorsement guidelines—93% were out of compliance.26 A separate study of 4,200 posts from 1,000 fashion micro-influencers found that only 14% of the posts were fully compliant with FTC guidelines.27 Even savvy consumers and experts can have trouble distinguishing between advertising This article was originally published by Frankfurt Kurnit Klein+Selz.. The deadline was originally April 21, 2020; it is now June 22, 2020. No P204500 Please, read this page keeping its age in mind as SEO changes rapidly and while the past is useful to remember and reference, it often doesn't provide the best strategies to apply today. Suffice it to say that these numbers have gotten a lot of companies to pay attention. No letter, no enforcement action. This content is 1 year old. Comments provide stakeholders an important opportunity to inform and shape the Guides and FTC enforcement policy which are revisited … 2020 Guide To FTC Influencer & Endorsement Guidelines. As I said, disclosure (and arguably common sense) is at the heart of these issues. The FTC announced in February that it would accept comments on a wide range of issues related to the Endorsement Guides. The Updated FTC Endorsement Guidelines: What Brands & Influencers Need To Know About FTC Disclosure Guidelines In 2019 The FTC has offered more guidance in the past on what constitutes proper disclosure—the agency even published a simple Q&A to address marketers’ basic concerns—but the ever-changing nature of social media makes establishing a set of clear-cut rules … On Facebook, Instagram, Twitter, Snapchat, and YouTube, there are a variety of ways to make a material connection disclosure. In the recent years, the FTC has begun to crack down on companies' and influencers' failure to adhere to the disclosure guidelines for paid posts. The Federal Trade Commission (FTC) recently announced it is seeking public comment on whether to make changes to its Endorsement Guides as part of its systematic review of all current FTC rules and guides.. On May 21, 1975, the Commission promulgated, under the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. But they soon graduated to the harsher stuff – enforcement actions with monetary penalties. An endorsement How To Comply With The FTC's Endorsement Guidelines The FTCs Endorsement Guides » The Ftc Endorsement Guides Dec 31, 2020 "The Guides, at their core, reflect the basic truth-in-advertising principle that endorsements must … How’s that? Last week, I highlighted key FAQs regarding the Federal Trade Commission’s (FTC) Endorsement Guides. In the crucial under-25 consumer demographic, social media wannabes are pretending to be paid to promote brands. In 2019, several e-cigarette companies ran afoul of the FTC when paid influencers pitched their vaping products on Facebook, Instagram, Twitter, and YouTube. By Samuel Cohen on September 2, 2020 Posted in Advertising Law, Endorsements, FTC Endorsement Guidelines, Marketing Law, Social Media, Social Media Law. That includes influencer promotions and product placement. As calculated by Forbes, companies are on track to spending at least $3 billion on influencer social media marketing in 2019. The FTC’s Endorsement Guides, Part 2: Understanding Influencers and FTC Disclosures . If the material connection is obviously and clearly stated in a social media post, the FTC is happy. Influencers and brands should reference FTC influencer guidelines directly at FTC.gov for more information and can contact endorsements@ftc.gov to ask any questions about FTC disclosures.. Update: The FTC updated their FTC influencer guidelines about disclosures in November 2019. Vyrl is not responsible for use of this information to construct an FTC-compliant disclosure. For instance, Facebook, Instagram, and YouTube offer “branded content tools” that mark posts as promotional or advertising content. For sponsors, […] This question is quite complicated. FTC Settles Complaint against Social Media Influencers. It’s a dodgy practice, but it does seem to make sense. The FTC is asking for input on a wide … In the new world of social media and influencer marketing, he would know which half was working. Endorsements are an important tool for advertisers and they can be persuasive to consumers. 41-58, three sections of the 1972 proposal as final guidelines (16 CFR 255.0, 255.3 and 255.4) and republished three others, in modified form, for additional public comm… The Federal Trade Commission may be increasing the severity and scope of its responses to misinformation and paid influencer ads that present themselves as organic content. Whether you’re an influencer or a brand marketer, the question is: are you ready for tougher scrutiny by the FTC? Interested parties submitted extensive comments. What does the FTC mean by a “material connection”? The Federal Trade Commission is seeking public comment on whether to make changes to its Endorsement Guides as part of the agency’s systematic review of all current FTC rules and guides. In fact, brand marketers are now facing the opposite problem. The Endorsement Guides were last updated substantially in 2009. Influencer marketing campaigns earn on average $5 in free social media exposure for every $1 spent on influencers (from Influencer Marketing Hub). #ad, #sponsored, or #paid followed by brand in caption, Optional, but required if the image does not include a written post or caption, Audible or visual disclosure at the beginning, Sequential stories only require disclosure at the beginning of the series, #ad, #sponsored or #paid followed by the brand is sufficient. The FTC uses a very simple principle when monitoring paid influencer social media promotions: Advertising should be truthful and not misleading. The Federal Trade Commission is seeking public comments on whether it should make changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (“Endorsement Guides”). just not which half. The deadline was originally April 21, 2020; it is now June 22, 2020. what, if any, disclosures advertisers or operators of review sites need to make about the collection and processing of publication of reviews to prevent them from being deceptive or unfair. The companies and their influencers followed all the FTC rules about disclosure. Home » Blog » Legal » 2020 Guide To FTC Influencer & Endorsement Guidelines. However, this is a good opportunity for businesses to evaluate their current marketing practices, especially if they utilize social media platforms and influencer endorsements. They forgot one very important detail: the FTC and FDA require all e-cigarette advertising to contain a warning about the addictiveness of nicotine. The FTC’s Endorsement Guides: Being Up-Front With Consumers . More importantly, younger consumers value influencers because they’re influencers. yet. As much as follower numbers, paid promotions are a prominent signal of an influencer’s social media status. After all, consumers are more likely to be influenced by an endorsement they believe is voluntary and unsolicited, right? The FTC applies the same rules to influencer marketing that they do to all other types of advertising: the influencer MUST disclose if they are being compensated in some way by the brands they are promoting. Since 2017, the FTC has been busy cracking down on influencers – and the companies that use them – if they break advertising laws. FTC Extends Comment Deadline For Endorsement Guidelines - 03/30/2020 June 22 is the deadline for comments about questions like whether children can understand social media disclosures. What kind of social media posts require a material connection disclosure? Comments must be received within 60 days of publication and will be posted on regulations.gov. Marketers and publishers … Dec 31, 2020 "The Guides, at their core, reflect the basic truth-in-advertising principle that endorsements must be honest and not misleading. 5 Tips for Proper Sponsored Posts. These rules do not include celebrities or spokespeople who are widely known from other media to be paid promoters of a particular brand. Currently, there's no direct action being taken to revise the FTC's endorsement guidelines. However, images are central to Instagram posts, so they will always require a written overlay even if there’s a written disclosure in the caption. 45) to the use of endorsements and testimonials in advertising. FTC Extends Comment Deadline for Endorsement Guides Review to June 22. The consumer watchdog agency is trying to protect users from deceptive ads on social media. A hashtag disclosure in the post, caption, or description. Specifically, the Guides address the application of Section 5 of the FTC Act (15 U.S.C. Among other things, the Guides state that when there is a connection between an endorser and a seller of an advertised product that could affect the weight or credibility of the endorsement, the connection must be clearly and conspicuously disclosed. The Federal Trade Commission is extending by sixty days the deadline to submit comments as part of the agency’s review of its Endorsement Guides. What about a free sample? The Federal Trade Commission works to promote competition, and protect and educate consumers. Statement of Commissioner Rohit Chopra Regarding the Endorsement Guides Review, Commission File. . Endorsement disclosures must be repeated if it is being made in the context of a live stream. The Federal Trade Commission is seeking public comments on whether it should make changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (“Endorsement Guides”). In addition to posting new Endorsement Guide FAQs, the FTC settled its first-ever complaint against individual social media influencers. FTC Looking for Public Comment. For example, an endorsement would be covered by the FTC Act if an advertiser – or someone working for an advertiser – pays you or gives you something of value to mention a product. Part of the reason, according to Audrezet, is that almost 90% of younger consumers consider any brand placement or promotion by a well-known influencer to be paid for even in the absence of a disclosure. We’re clear on material connections, disclosures, and what the FTC considers a “promotion” on social media. Chopra intends for the FTC to focus on the advertisers, rather than the influencers. The FTC guidelines are clear: The buck stops with the advertiser when it comes to the disclosure of endorsements. The Endorsement Guides were last updated substantially in 2009. In fact, if he were paying attention, he even would know how much each tweet, post, or product placement contributed to the bottom line. . The Federal Trade Commission is extending by sixty days the deadline to submit comments as part of the agency’s review of its Endorsement Guides. Completely within the first 125 characters of the caption, At the beginning and at regular intervals throughout the live stream, 2020 Guide To FTC Influencer & Endorsement Guidelines, According to the Harvard Business Review, around 18% of all consumers have purchased a product in the past year. A platform’s “branded content tool” which identifies a post as a promotion or advertisement (though, as mentioned, this cannot be the only form of disclosure). The Endorsement Guides, formally known as the Guides Concerning the Use of Endorsements and Testimonials in Advertising, first enacted in 1980 and amended in 2009, provide guidance to businesses and others to ensure that advertising using endorsements or testimonials abide by the requirements of the FTC Act. The FTC does not regard a disclosure to be “clear” if one of these criteria is not met. The Federal Trade Commission is looking to strengthen its endorsement guidelines, which could have a big effect on social media influencer marketing. By Ted Max on May 13, 2020 Posted in Endorsements, FTC Endorsement Guidelines, Social Media. . An invitation to a party? On May 21, 1975, the Commission promulgated, under the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. They started easy by mailing warning letters to major influencers and their brands. 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