FTC updates its Endorsement Guide after 14 years

Federal Issues FTC Advertisement FTC Act

On June 29, the FTC announced the finalized updated version if its Endorsement Guide, to help the agency combat deceptive reviews and endorsements. The FTC says its endorsement guides, which were previously updated in 2009, advise businesses on what practices are considered unfair and deceptive in violation of the FTC Act. The FTC explained that the current, updated version takes into consideration comments solicited earlier this year, to reflect the ways advertisers now reach consumers. The revisions: (i) “articulate[] a new principle regarding procuring, suppressing, boosting, organizing, publishing, upvoting, downvoting, or editing consumer reviews so as to distort what consumers think of a product”; (ii) “address[] incentivized reviews, reviews by employees, and fake negative reviews of a competitor;” (iii) “add[] a definition of ‘clear and conspicuous’ and saying that a platform’s built-in disclosure tool might not be an adequate disclosure”; (iv) “[change] the definition of ‘endorsements’ to clarify the extent to which it includes fake reviews, virtual influencers, and tags in social media;” (v) “better explain[] the potential liability of advertisers, endorsers, and intermediaries”; and (vi) highlight[] that child-directed advertising is of special concern. The FTC concurrently issued an updated version of its guidance regarding frequently asked questions about its endorsement guides.