The Federal Trade Commission (FTC) plays a critical role in maintaining fair marketplace practices in the United States. Among its responsibilities is ensuring transparent and truthful advertising, including the proper use of endorsements and testimonials.
Key Update: June 2023 Revised Endorsement Guidelines
In June 2023, the FTC updated its guidance for 16 CFR Part 255: Guides Concerning the Use of Endorsements and Testimonials in Advertising. These updates are designed to reflect modern advertising trends—particularly in digital and influencer marketing—and to help prevent deceptive practices that could mislead consumers.
These revised guidelines emphasize:
- Clear and conspicuous disclosures of material connections between endorsers and brands
- Honest and substantiated claims in endorsements and testimonials
- Greater accountability for influencers, affiliates, and advertisers alike
To help advertisers, influencers, and affiliate marketers understand and comply with these changes, the FTC has published several educational resources:
- FTC Press Release: Overview of the June 2023 update
- FTC Endorsement Guides: What People Are Asking: FAQs with practical scenarios and compliance tips
- Disclosures 101 for Social Media Influencers: A quick-start guide to disclosure best practices
- Soliciting and Paying for Online Reviews: A Guide for Marketers: Guidance for managing consumer reviews ethically
Affiliate-Specific Perspective from the PMA
The Performance Marketing Association (PMA) has been actively supporting the affiliate marketing community in interpreting these changes. Tricia Meyer, Executive Director of the PMA, and members of the PMA provides expert insight in a webinar, breaking down how these revised FTC guidelines impact affiliate marketers specifically. This is a valuable read for anyone operating in the performance marketing space.
New in 2024: Final Rule Targeting Fake Reviews
In August 2024, the FTC announced a Final Rule that prohibits the sale or purchase of fake consumer reviews and testimonials. This rule, long in the making, allows the FTC to:
- Impose civil penalties on violators
- Crack down on AI-generated fake reviews
- Strengthen enforcement efforts to protect consumers and honest businesses
This Final Rule marks a significant step forward in deterring deceptive review practices and maintaining credibility in digital marketing.
For a deeper dive into the Final Rule and its implications, check out the PMA’s analysis and commentary, which offers helpful context for affiliate and performance marketers.