Womble Bond Dickinson attorney Nadia Aram presented to the Association of Corporate Counsel’s Compliance and Ethics Network on “Compliant Endorsements Overview: In Light of Recent FTC Scrutiny. The presentation took place on Nov. 16, and approximately 65 in-house counsel attended.
The FTC has sent hundreds of advertisers (including high profile retailers, manufacturers, agencies, and other large businesses) across assorted industries a Notice of Penalty Offenses in recent months. The Notice warns 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 is the sponsor of the ACC Compliance and Ethics Network.