BT-REQ-1940 Consumer Holiday Guide 2023 v9 BH - Flipbook - Page 18
Checking it twice: using paid
endorsements and product
reviews in U.S. advertising
Meryl Bernstein
Partner, Retail and Fashion Co-head
New York
Connie Potter
Associate
Washington, D.C.
Veronica Colas
Counsel
Washington, D.C.
MK Barker
Associate
Northern Virginia
The United States Federal Trade Commission (FTC) stepped up
scrutiny of online advertising by releasing revised Endorsement
Guides and a proposed rule on fake reviews earlier this year.
As the holiday season approaches,
retailers should assess their practices for
online reviews and paid endorsements
(including endorsements by social
media in昀氀uencers) to ensure that
they are truthful and non-misleading,
including by:
• Reviewing guidelines and any
written agreements for endorsers
and in昀氀uencers: Endorsers must
disclose their material connection
with advertisers clearly and
conspicuously (make it hard to miss!)
and communicate the nature of the
connection (e.g., “paid ad”).
• Managing risk from endorsers:
Advertisers may be liable for
misleading or unsubstantiated
18
Retail and Fashion Holiday Guide 2023
statements made by their endorsers
or made by unconnected third parties
and reposted by the advertiser. Think
twice before sharing a consumer’s
post to make sure it is not deceptive,
and monitor posts by endorsers
to ensure they are not making
misleading statements. Consider
providing a “Do’s” and “Don’ts” list of
best practices for endorsers.
• Exercising caution with
advertisements directed at
children: The FTC indicated that
advertisements directed at children
are of special concern, and practices
permitted in adult-directed
advertising may come under greater
scrutiny when advertising to kids.
