The US Federal Trade Commission (FTC) is considering moves to tighten up its guidelines on fake reviews and misleading marketing.
The FTC Endorsement Guides give guidance to businesses on ensuring that advertising using endorsements or testimonials is truthful, and that advertisers need to be upfront with consumers and clearly disclose unexpected material connections between endorsers and a seller of an advertised product. They warn that advertisers who lie to consumers via endorsements or testimonials may violate the FTC Act.
"We’re updating the guides to crack down on fake reviews and other forms of misleading marketing, and we’re warning marketers on stealth advertising that targets kids." says Samuel Levine, director of the FTC’s Bureau of Consumer Protection. The FTC is warning social media platforms that some of their tools for endorsers are inadequate, and may open them up to liability.
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