Small Business Internet Guide-SBOguide

The FTC is preparing to place new rules in effect beginning December 1, 2009. These rules will affect all online marketing efforts with regard to testimonials and endorsements.

If your testimonials or endorsement result in some form of remuneration or the intent of same, you need to disclose that you have a relationship with the product or service provider you are promoting that could result in financial gain.

According to the guidelines, "Advertisers are subject to liability for false or unsubstantiated statements made through endorsements, or for failing to disclose material connections between themselves and their endorsers [see § 255.5]. Endorsers also may be liable for statements made in the course of their endorsements." (Emphasis added by author.)

Review your testimonials and endorsements and make sure they meet the new guidelines. If you choose to endorse a product, be aware that you too may be liable for statments made, especially if you are being compenstaed in any way for your statements.

NOTE: This article is not to be construed as legal advice, but simply as notice of the impending changes to FTC regulations. If you have any concerns or questions after reading the FTC guideline or viewing the videos, consult your attorney.

The full text of the new FTC regulations is available by clicking HERE and I urge you to become familiar with its content.

You can watch this and other short videos from Mary Engle of the FTC.

The other videos in the FTC series are available from these links.

1. Why did the FTC update the Endorsement Guides?
2. What do the Endorsement Guides mean for bloggers?
3. How do bloggers follow the Endorsement Guides?
4. Is the FTC planning to sue bloggers?
5. Where to go for more information.