The FTC Steps Up Its Game On Endorsement Enforcement

As noted in this press release issued earlier this week, the Federal Trade Commission ("FTC") has sent a Notice of Penalty Offenses to over 700 companies, in which the FTC cites a handful of past cases it has successfully brought as proof that certain marketing tactics involving endorsements and product reviews violated Section 5 of the FTC Act.  While the Notice does not accuse any of the recipients of wrongdoing, its distribution to all of these companies is a critical development because it means that going forward, should the FTC determine that any company who received this Notice is engaged in any of the listed practices, the FTC may sue that company in federal court and seek penalties of up to $43,792 per violation.  What prompted such an action by the FTC?  Let's look at the path that brought us here.