Contest Entrants' Pins Raise FTC Endorsement Concerns

The Federal Trade Commission (FTC) recently investigated whether Cole Haan, Inc. violated Section 5 of the FTC Act when it required entrants in its Pinterest contest to pin images of Cole Haan products in order to enter the contest.

The Bottom Line

The FTC's guidance makes it clear that that pinning may constitute an endorsement of a company or its products, and entry into a sweepstakes or contest may constitute a material connection that is required to be disclosed under the FTC Endorsement Guides. Before running any social media promotion, companies should check the social media platform's terms and conditions, and should ensure their bloggers, influencers, spokespeople, and even promotion entrants are disclosing their material connections and institute reasonable monitoring programs to ensure compliance.