Intro to Marketing

Mr. Bernstein

Endorsements

October 14, 2014

2

Intro to MarketingMr. Bernstein

Definition of an EndorsementAKA Testimonials, an Endorsement is a public approval of a good or serviceCan be TV, radio, signage, social media, or other mediaFTC definition:

“Any advertising message that consumers are likely to believe reflects the opinions, beliefs, findings, or experience of a party other than the sponsoring advertiser.”

3

Intro to MarketingMr. Bernstein

Definition of an EndorsementFTC guidelines:

1.Must always reflect the honest opinions, findings, beliefs or experiences of the endorser.

2.The endorser must have real experience with the product.

3.May not contain any deceptive or misleading statements, and must be substantiated by the advertiser.

4

Intro to MarketingMr. Bernstein

Definition of an EndorsementFTC guidelines:4. Endorsements may not be presented out of context or reworded so as to distort the endorser’s opinion.5. The endorser must use and continue to use and believe in the product as long as the endorser is used in the advertisements.6. If the product changes in any way, the company must notify the endorser, who must continue to use and believe in the new or revised product.

5

Intro to MarketingMr. Bernstein

Enforcement of FTC GuidelinesCase study: http://www.technologylawsource.com/2014/04/articles/privacy-1/ftc-warns-of-endorsement-guidelines-violation-risk-presented-by-hashtag-promotions/Summary: FTC issues warning shot at “Hashtag

Promotions” where prizes are awarded to contestants who post content that may not be recognized as paid advertising