Are You Up On New FTC Rules About Testimonials and Endorsements?

The new FTC rules on testimonials and endorsements are effective December 1, 2009. Pay particular attention to these areas of your Web site which may need some tweaking to comply.

If you have a partnership with another company or have a system in place where you earn a commission for referred sales, or if you have customer testimonials, then you will need to be sure you're including a bit more information. The rules are made to protect consumers from unrealistic expectations, unverified results' claims, and endorsements that are untruthful.

Here's the brief overview:

Testimonials

• Verify that the person giving the testimonial has actually achieved the stated results

• Verify the typical results that can be expected and state them

• If you make a change to the product being endorsed, verify that the testimony still stands 

Endorsements

• Disclose "clearly and conspicuously" compensation in exchange for endorsing a product or service (Compensation can be construed as a freebie in exchange for a review.)  

As usual with all government rules, there are many gray areas. :) 
Bottom line - even if you are already doing business ethically and honestly, now you need to STATE it! 

 

Here is the link to the official guide: FTC Guides Concerning the use of Endorsements and Testimonials in Advertising