More Laws = More Fear! This could be the first step to limit your freedom of speech!!!
In the name of “Consumer Protection” the FTC released it’s new guidelines on what someone can say about a product or service. This may be the first step in censoring what people can say on the internet. Think about the fear this will cause when an American wants to write about a company or candidate they endorse.
If Americans become worried about full disclosure of what they say on the internet, then Americans WILL STOP WRITING!!! Every reporter will need to disclose their stock portfolio because their mutual fund might includes a stock that the reporter is writing about (financial interest).
Will internet reviews from honest Americans need to disclose their financial holdings when reviewing a new book or movie because a family member may work in a cinema. What could the government consider “Financial Interest”. A small business owner will have to disclose that they “TRY” to make money and he has a financial interest in what he is telling the public on the internet.
What happen to buyer beware, why does the government need to increase fear of public speech? This is real, read the press release below and you decide. When the government take away our freedom of speech, the government TAKES AWAY OUR FREEDOM!
FTC Publishes Final Guides Governing Endorsements, Testimonials
Changes Affect Testimonial Advertisements, Bloggers, Celebrity Endorsements
The Federal Trade Commission today announced that it has approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act.
The notice incorporates several changes to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980.
Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides – which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as “results not typical” – the revised Guides no longer contain this safe harbor.
The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.
Celebrity endorsers also are addressed in the revised Guides. While the 1980 Guides did not explicitly state that endorsers as well as advertisers could be liable under the FTC Act for statements they make in an endorsement, the revised Guides reflect Commission case law and clearly state that both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement – or for failure to disclose material connections between the advertiser and endorsers. The revised Guides also make it clear that celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media.
The Guides are administrative interpretations of the law intended to help advertisers comply with the Federal Trade Commission Act; they are not binding law themselves. In any law enforcement action challenging the allegedly deceptive use of testimonials or endorsements, the Commission would have the burden of proving that the challenged conduct violates the FTC Act.
The Commission vote approving issuance of the Federal Register notice detailing the changes was 4-0. The notice will be published in the Federal Register shortly, and is available now on the FTC’s Web site as a link to this press release. Copies also are available from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.
- MEDIA CONTACT:
- Betsy Lordan
Office of Public Affairs
202-326-3707 - STAFF CONTACT:
- Richard Cleland
Bureau of Consumer Protection
202-326-3088
(FTC File No. P034520)
(endorsement testimonial guide.wpd)
Loading ...
This look like an attempt to “Halt” free speech. Every Amway, Tupperware or Avon lady will now have a struggle to make a living worrying about full disclosures and how they can use a testimonial from a person that received some free stuff during a Tupperware party.
It looks like the government will sneak in a policy change quietly and then surprise us when they make someone the example. I wonder which restaurant chain they will go after first when the football player’s endorsement money is not disclosed. Beware Jared from Subway, Ronald from McDonalds and the King will now have to disclose his Burger King financial statement.