Broadly speaking, FTC regulations require sellers and advertisers to disclose all financial interests that individuals may receive in connection with providing testimonials or product endorsements. Sellers must ensure that paid endorsers and testimonial-writers (and, in some instances, the sellers themselves) include prominent disclosures adequately detailing the prospective benefits that such parties receive in connection with their endorsements, testimonials or other promotional efforts. Failure to do so could result in regulatory action or other adverse legal consequences. As such, businesses should always consult with a knowledgeable attorney before commencing a marketing campaign involving paid product endorsements.
If you are interested in learning more about this topic, or if you have been served with legal process relating to deceptive advertising, please e-mail us at info@kleinmoynihan.com or call us at (212) 246-0900.
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