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Practical Framework for March 2013 Compliance Guidelines

Source: https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking

The same consumer protection laws apply to digital media to the same extent as they do to traditional media to prevent an advertisement or marketing tool from being unfair or deceptive.

Whenever possible, disclosures should be made on the advertisement or marketing piece itself, rather than relying on a separate disclosure to qualify the claim (like a hyperlink to a new page).

C O M P LY I N G W I T H F T C ‘ S A D V E R T I S I N G R U L E S

I N E L E C T R O N I C M E D I A

I N T R O D U C T I O N

When working with brands, it’s important to disclose the proper information to protect yourself legally. At first you may receive products as gifts, but eventually you will start to also receive monetary compensation. In BOTH scenarios, you MUST comply with the FTC’s advertising rules in electronic media.

On the next page, we have included the framework that the FTC has outlined for compliance guidelines and we have included the link to another document for further reading. We hope that you find this resource informative and helpful.

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Required disclosures must be clear and conspicuous. In order to make the disclosure conspicuous, online advertisers should:

* Place the disclosure as close as possible to the claim it qualifies. It should be in a location where it can be seen and understood without having to scroll away from the claim, taking into account how consumers use mobile platforms (e.g., zooming on smart phones and tablets), as well as empirical research about where people look on screens;

* Display disclosures in a location where they are likely to be considered before the consumer makes the decision to purchase;

* Use language and syntax that is understandable to the intended audience. Symbols and icons meant to indicate a disclosure likely will not be sufficient;

* If audio, use volume and cadence to make it understandable to the intended audience;

* Repeat disclosures as needed in more lengthy advertisements;

* Make disclosures independent of ”terms of use“ language or contractual information;

* Avoid putting disclosures in pop-up windows, which are often blocked or disregarded by consu-mers. If using a pop-up, require affirmative action (like selecting ”yes“ or ”no“ options) to ensure the disclosure is seen and understood;

* Use a hyperlink only when necessary, and only when the hyperlink is noticeable and clearly labeled as leading to relevant disclosure information, placed near the claim it qualifies, and links directly to the disclosure language; and

* For Twitter, use ”#Ad“ or ”#Sponsored“ up front and include disclosure language or a clearly labeled hyperlink leading directly to disclosure information within the same ”tweet“ as the claim to which it relates.

If disclosure is required to keep a claim from being unfair or deceptive, and the disclosure cannot be made clearly and conspicuously in the medium desired, then the claim should not be made.

C O M P LY I N G W I T H F T C ‘ S A D V E R T I S I N G R U L E S

I N E L E C T R O N I C M E D I A C ON T I N U E D

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Answers to the Questions that People Are Asking

The following topics and questions are covered in the link below. It is an easy read and we highly suggest you at least skim some of the topics to familiarize yourself with the rules and regulations.

The FTC’s Endorsement Guides: http//www.ftc.gov/os/2013/03/130312dotcomdisclosures.pdf

Topics & questions covered in the guide:

About the Endorsement Guides

When Does the FTC Act Apply to Endorsements?

Product Placements

Endorsements by Individuals on Social Networking Sites

How Should I Disclose That I Was Given Something for My Endorsement?

Other Things for Endorsers to Know

Social Media Contests

Online Review Programs

Soliciting Endorsements

What Are an Advertiser’s Responsibilities for What Others Say in Social Media?

What About Intermediaries?

What About Affiliate or Network Marketing?

Expert Endorsers Making Claims Outside of Traditional Advertisements

Employee Endorsements

Using Testimonials That Don’t Reflect

T H E F T C ’ S E N D O R S E M E N T G U I D E S