As we beforehand reported, the Federal Commerce Fee (FTC) seeks feedback on proposed updates to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (Endorsement Guides). The FTC’s discover was printed within the Federal Register on July 26, 2022 (87 Fed. Reg. 44288), and feedback have to be acquired by September 26, 2022.
The Endorsement Guides are supposed to assist companies make sure that their promoting testimonials and endorsements will not be misleading or deceptive and that materials connections between endorsers and corporations are disclosed. As we mentioned earlier, the FTC’s proposed updates to the Endorsement Guides focus on advertisers that publish faux optimistic opinions or delete destructive opinions and advertisers whose disclosures fall quick. The adjustments would additionally add, amongst different issues, extra illustrative examples to assist make clear the Guides’ provisions and new sections on endorsements and shopper opinions.
Moreover, the FTC proposes including a brand new, very basic provision relating to youngsters, specifically, that “[p]ractices which would not ordinarily be questioned in advertisements directed to adults might be questioned” if they’re directed to youngsters. Nevertheless, the preamble dietary supplements this by noting that the FTC recommended an analogous provision in 1972 (after the kid-vid continuing) however withdrew it in 1976. Now, the FTC means that “even as more evidence is gathered about the effects of children’s advertising, there is ample basis to recognize that children may react differently than adults to endorsements in advertising or to related disclosures.” Chair Lina Khan’s assertion notes that the FTC presently lacks the total evidentiary foundation to help particular steering or suggest greatest practices, and he or she pointed to the deliberate October 19, 2022 workshop, “Protecting Kids from Stealth Advertising in Digital Media,” as a car to get hold of extra data. (The remark deadline was July 18).
It will likely be vital for companies to weigh in on all points of the FTC’s proposals.