Friday, July 16, 2010
This short article discusses new electronic media, such as social networking sites, blogs, chat rooms, etc., and their use for endorsing products when a reviewer using this media does not disclose a direct relationship with the product's advertiser, seller or manufacturer. This observation is clarified by the mention of the latest revision of the FTC's "Guides Concerning the Use of Endorsements and Testimonials in Advertising," effective December 1, 2009. The Guides explain to advertisers on how to ensure that endorsements are not false or misleading under the FTC Act. They drill down into what constitutes an endorsement. The Guides generally require that where there is a relationship between advertiser and endorser that is not inherently obvious, it must be disclosed.
Download the article from SSRN at the link.