NASE Blogs

New FTC Guidelines [Rules & Regs]

Oct 08, 2009
Posted by Molly Nelson - In the first revision of its rules for endorsements and product reviews since 1980, the Federal Trade Commission (FTC) has introduced new guidelines that will go into effect December 1st.  Although the abundance of shoulder pads and neon means that things may not look very different from 1980, the shift to blogs and social media allow consumers to find information in a very different way from 30 years ago. 

Under the revised rules:
  • An existing rule that product reviewers must reveal any connection with advertisers has been extended to cover bloggers also.
  • When endorsing a product on a blog, social network or television talk show, celebrities must reveal any relationships with advertisers. 
  • Companies showing advertisements that contain testimonials of atypical results from a product must also disclose results that consumers should usually expect. 
Existing rules carry a fine as high as $11,000 for noncompliance of product endorsers and reviewers.