FTC Endorsement Guides: Navigating the New Landscape
A Closer Look at the Updated Endorsement Guides
These recently released Endorsement Guides carry significant changes from their predecessor, focusing especially on the following:Curbing Deceptive Review Practices 
With the rise of online reviews as a critical marketing tool, the FTC has cracked down on deceptive review practices. It’s now unacceptable to suppress negative reviews or manipulate them in a way that distorts consumer perception of a product. This includes boosting, upvoting, downvoting, editing, or using any other tactic that could artificially alter the consumer’s impression.
*For instance, if a law firm asks its employees to write only positive reviews about the firm while downvoting negative ones, such practice would be considered manipulative and deceptive under the new guides.*
Navigating Incentivized Reviews and Employee Reviews
The FTC provides guidance on handling incentivized reviews and reviews from employees, including the practice of “seeding” fake reviews of competitors.*For example, if an attorney firm incentivizes its clients to write positive reviews without disclosure of such incentives, this is not acceptable. On the other hand, if a firm encourages reviews but clearly discloses any incentives or rewards provided to the reviewer, it could fall within acceptable guidelines.*
‘Clear and Conspicuous’ Disclosures on Social Media
The FTC highlights the importance of making a “clear and conspicuous” disclosure on social media, a feat that cannot always be achieved using a platform’s built-in disclosure tool.Broadening the Definition of an “Endorsement”
The definition of an “endorsement” has now been extended to include the use of virtual influencers, tags, and fictionalized reviews on social media.*For example, using a virtual influencer to promote your law firm without making it clear that the influencer is not a real person could be seen as deceptive under the new guidelines.*
Clarifying Liability of Stakeholders
The FTC also elaborates on the relative liabilities of advertisers, agencies, intermediaries, and endorsers themselves.FTC’s Emphasis on Child-Directed Advertising
Child-directed advertising has now become its own unique section of the Endorsement Guides. The FTC highlights that endorsements in advertisements targeted towards children may warrant special scrutiny due to the nature of the audience.Looking into the Updated FAQs
In addition to these changes, the FTC has updated its 2017 FAQ document – The FTC’s Endorsement Guides: What People Are Asking, which now reflects the updated guidelines. With 40 additional questions and numerous revisions to existing answers, the FAQ document encompasses new technologies and social media platforms.
FTC Moving Forward
The FTC has been industrious, and we can expect a continuing momentum. Likely already seeking a test case to apply the new Endorsement Guides, it’s time for attorney firms to stay ahead of these updates. Ensuring compliance with both internal and external influencer and social media disclosure policies is now more important than ever. Stay connected for an in-depth analysis of these updates and their implications for marketers, agencies, and endorsers.