As part of a periodic review of its rules and guidance, the Federal Trade Commission is seeking public comment as to whether changes should be made to its Endorsement Guides, which provide insight as to the agency’s thinking on influencer marketing and testimonials/endorsements. Initially published in 1980, the Guides were most recently revised in 2009 to provide guidance on a wide array of internet marketing techniques. Since 2009, social media and the use of influencer marketing has become an integral part of many companies’ advertising and marketing portfolio and has grown significantly. Against this backdrop, the FTC is seeking public comments to determine if and how it should revise the Guides to reflect this continually evolving landscape of social media and online advertising.
Andrew Lustigman and Morgan Spina published an article in BNA Big Law Business entitled “Understanding Advertising Disclosure Obligations Within Virtual Reality.”
Many early stage technology-based companies with promising ideas may compromise substantiating their product’s performance claims with the belief that there is time for compliance down the road. The FTC’s recent case against the marketers of two app-supported smartphone accessories, advertised to accurately measure consumers’ blood alcohol content, and who received funding on Shark Tank, highlights the risk in waiting.
Andrew Lustigman, head of the firm’s Advertising, Marketing & Promotions Practice Group, was quoted in Fashion Law Blog in separate articles titled “A How-To Guide for Properly Disclosing Your Sponsored Posts” and “EXCLUSIVE: The Dirty Advertising Practices of the Industry's Biggest Brands, Bloggers” addressing native advertising and the FTC, social media influencers and bloggers not adhering to appropriate disclosure guidelines.
Andrew Lustigman, head of the firm’s Advertising, Marketing & Promotions Practice Group, was quoted in the article “Under the Influence” published in Contently on April 20th, 2016, following the FTC’s Lord & Taylor settlement focusing on native advertisements and influencers.
Andrew Lustigman, head of the firm’s Advertising, Marketing & Promotions Practice Group, was quoted following the FTC’s Lord & Taylor settlement focusing on native advertisements and endorsements in the article, “FTC's Lord & Taylor Action Shows Perils Of New Ad Strategies,” published in Law360 on March 15, 2016.
Retailers across the country have been facing private class action lawsuits alleging that certain discount pricing practices constitute false advertising based on the allegation that the discount is fictitious. Discount retailer, Kohl's, recently obtained dismissal of one such action.
The FTC’s Enforcement Policy Statement on Deceptively Formatted Advertisements and business guidance detailing the agency’s position with respect to native advertising reinforces advertisers’ obligation to be transparent and authentic. Moreover, with the increasing prevalence of native ads, the FTC’s announcements likely will trigger enforcement actions in the not too distant future.