The FTC recently sent hundreds of advertisers (including high profile retailers, manufacturers, agencies, and other large businesses) across assorted industries a Notice of Penalty Offenses. The Notice warned recipients regarding use of endorsements and testimonials in advertising that can be deceptive. Many businesses increasingly rely on influencers and customer reviews and the FTC has been increasingly reviewing these practices. The Notice does not mean the FTC is investigating the specific recipients’ practices, but warns the recipients (and other advertisers more generally) the FTC is watching and they need to manage their compliance or risk civil penalties.
Womble Bond Dickinson attorney Nadia Aram hosted a timely discussion focusing on practices the FTC has found unfair or deceptive as well as proper use of endorsements and testimonials to keep your company compliant.