The FTC Advertising Guides : Impact on Social Media

Last month, advertising guidelines concerning testimonials and endorsements that were issued by the Federal Trade Commission (FTC) went into effect. They impact every industry segment. Simply put, these new regulations reflect a key pro-consumer shift that can not only impact the basis for governmental investigations but influence consumer litigation and advertising challenges. They establish liability for all stakeholders in the marketing process - - whether companies/brands, ad agencies, consumer endorsers, or celebrity spokespersons - - concerning “sponsored” communications that constitute “advertising messages.”