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ARTICLE · 01 JUNE 2022

FTC Endorsement Guides: Proposed Changes

On May 24, 2022, the Federal Trade Commission ("FTC") unanimously approved a notice of proposed amendments to its "Guides Concerning the Use of Endorsements and Testimonials in Advertising" (the "Endorsement Guides").

United StatesMedia, Telecoms, IT, Entertainment

On May 24, 2022, the Federal Trade Commission ("FTC") unanimously approved a notice of proposed amendments to its "Guides Concerning the Use of Endorsements and Testimonials in Advertising" (the "Endorsement Guides"). The proposed amendments to the Endorsement Guides target, among other things, the fraudulent practice of posting fake positive reviews and suppressing bad reviews in online and social media platform content. The notice also serves as a warning to social media platforms that they must maintain adequate endorsement disclosure tools, or they may be held liable for endorsers' improper disclosures.

Please note that businesses that mislead consumers through use of endorsements and testimonials in advertising may violate the FTC Act and are subject to severe penalties. To avoid such an outcome, businesses need to be aware of and prepare to comply with the changes to the Endorsement Guides should they go into effect.

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