Social Media
The FTC actively investigates and takes action against influencers and brands that fail to clearly disclose relationships when promoting or endorsing products through social media. The FTC’s Endorsement Guides provide that if there is a material connection between an endorser and an advertiser that might affect the weight or credibility that consumers give the endorsement, that connection should be clearly and conspicuously disclosed.
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FTC Warns Marketers to Comply with the Consumer Review Rule
December 28, 2025Consumers often rely on reviews to help them choose between everything from home repair companies to apartments to lawyers. When those reviews reflect honest feedback from real people who have actually used a product or service, the feedback can be invaluable. Reviews can also encourage people to take a chance on an unknown company or…
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Richard Newman Authors Article for PMA on FTC Final Rule Combatting Fake Consumer Reviews and Testimonials
August 14, 2024FTC compliance and defense lawyer Richard B. Newman recently authored an article the Performance Marketing Association “FTC Announces Final Rule Combatting Fake Consumer Reviews and Testimonials.” In August 2024, the Federal Trade Commission announced a Final Rule combatting fake consumer reviews and testimonials by prohibiting their sale or purchase. The article discusses how the Final…
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Influencer Violation of Florida Law May be Based Upon FTC Guidelines
July 13, 2024In the matter of Sava v. 21st Century Spirits, 2024 WL 3161625 (N.D. Ill. 2024), federal district court held that the FTC Endorsement Guides should be afforded “due consideration and great weight” when assessing the issue of whether influencers should have disclosed their material relationship with a brand. Here, Blue Ice Vodka, 21st Century Spirits…
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Richard Newman Authors Article for JD Supra on Potential Changes to FTC Biz Opp Rule to Include Money-Making, Business Coaching and Mentoring, and eCommerce and Investment Opportunities
January 10, 2023FTC defense attorney Richard B. Newman recently authored an article for JD Supra titled “FTC Compliance Attorney Foreshadows Evolving Biz Opp Rule to Include Money-Making, Business Coaching and Mentoring, and eCommerce and Investment Opportunities.” The article examines the responsibilities of “covered sellers,” the “Disclosure Document, “the Earnings Claim Statement,” tips for complying with the Biz…
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CFPB Issues Warning About Contractual Gag Clauses and Consumer Reviews
March 30, 2022On March 22, 2022 the CFPB issued a policy statement on contractual “gag” clauses and fake review fraud. While the bulleting indicates that financial companies will face consequences for illegally manipulating or suppressing consumer reviews, the message is one with broader implications for all digital marketers. The policy guidance regarding potentially illegal practices related to…
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FTC Commissioners Urge Congress to Restore Section 13(b) of the FTC Act
November 3, 2020As blogged about here, the FTC’s authority to seek monetary disgorgement relief from defendants in federal court is under assault. Consequently, all five FTC Commissioners have recently forwarded a letter to the Chairs and Ranking Minority members of the Senate Commerce and House Energy & Commerce Committees urging the Committees to pass legislation that would…
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