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FTC Question

by TheMagicShow
3 replies
Hi Warriors,

Are we liable if we have given testimonials/endorsements in the past? Does every testimonial have to be proven? I have read the threads posted here. Are we liable as the ones that give the testimonials as well?

This issue is a concern to many marketers, yes, even legit marketers want to stay safe and not pay a $11,000 fine.

TIA
#ftc #question
  • Profile picture of the author Alexa Smith
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    • Profile picture of the author kindsvater
      There's no liability for giving testimonials. It is a question of contextual deception and the FTC is setting forth more specific guidelines to make sure testimonials are properly considered by those who read them.

      Is the issue retrospective? Depends on the context. Something like a physical book cannot be changed.

      A web page can.

      If you have a testimonial saying someone can make $500,000 from your program, but only 1 person in 10,000 buyers did that, and no one else made more than $250, then the testimonial is not typical.

      Do you need to change that even though you put up the ad 3 years ago?

      Yep.

      Otherwise, you're potentially deceiving everyone from today on forward reviewing your ad.

      That type of extreme statement has always been problematic. Now, you have more clarity and the FTC can point to a more specific rule that is being violated.

      Frankly, I don't see a lot of 'new law' being created by the FTC, simply better clarification and guidelines about issues the FTC could have already prosecuted.
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