On October 5th, the Federal Trade Commission announced an update to guidelines for advertisers who use testimonials. To clarify, no new legislation is involved; the FTC simply updated the suggestions for staying in compliance with the FTC Act.

Last modified in 1980, the guidelines refine the requirements for advertisers using testimonials and endorsements to sell products and services.

What You Need to Know

These changes are significant to consumers because they change what information advertisers are required to present about a product and how they’re required to present it. Here’s a look at what you may notice next time you’re watching TV or flipping through a magazine:

• Typical results must be disclosed: You’ve probably seen ads for weight-loss supplements that show people losing enormous amounts of weight using a product – with small text that reads “results not typical.” Under the new guidelines, advertisers are required to explain what typical results may look like, as well, to give a more honest picture of what the product can do.
• Material connections must be disclosed: The new guidelines require endorsers to reveal all incentives – cash and otherwise – they receive for pitching a product. This condition has become important since blogging became popular: in some cases, corporations pay seemingly independent bloggers to post positive messages about a product, effectively deceiving readers (morally bankrupt payday loan stores reportedly tried something of the sort not long ago).
• Celebrities can take the heat, too: Under the old guidelines, celebrity endorsers ran no risk of being held legally responsible for any of the claims they made during their endorsement – all the culpability went to the company. The revised guidelines, though, place more responsibility on celebs, opening them to liability for the claims they make.
• Non-traditional endorsements must be disclosed: The new regulations also require celebrities endorsing or promoting products in non-traditional advertising outlets (during a talk show, for example) to reveal any material connections they have with the company that makes the product in question.

How this Can Help You

Much of what the FTC does is designed to help you, the consumer, sift through the claims and promises made by large companies and advertising firms. While no regulatory body can stay ahead of innovations, it’s nice to know that the FTC continues to protect the people.

If you think you may have been victimized by deceptive or illegal advertising, you may want to fill out a consumer complaint form on the FTC’s web site, FTCComplaintAssistant.gov.

You may also wish to talk to a local attorney about filing bankruptcy if your finances are in disarray.

Tags: advertising, blog endoresements, endorsement, truth in advertising