New FTC Media Guidelines--Celebs and Docs

FTC recently issued a revised version of its Guides Concerning the Use of Endorsements and Testimonials in Advertising (available online here), which address endorsements by consumers, experts, organizations and celebrities, as well as the disclosure of important connections between advertisers and endorsers. While the 1980 Guides did not explicitly state that endorsers as well as advertisers could be liable under the FTC Act for statements they make in an endorsement, the revised Guides reflect FTC case law and clearly state both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement—or for failure to disclose material connections between the advertiser and endorsers. The revised Guides also make it clear that celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media. The Guides are administrative interpretations of the law intended to help advertisers comply with the FTC Act; they are not binding law themselves.

Quite frankly, it’s pretty much the same rules I’ve been following for years when promoting a client. Kind of like, what’s old is new again. Why hide anything? All the celebrities and doctors we’ve had out on the media trail were always upfront with editors and producers.

I would hope those rules have been followed by reputable industry companies over the past 25 years. (Can I get an “Amen,” brothers and sisters?) When I introduced CitriMax using Kim Alexis, and Linda Evans for Ostivone, this was exactly the route I took. All editors and producers knew that these spokespersons were paid by the sponsor companies. Both women were quite talented, but there was no way they could make a product claim if they tried. Kim could not remember InterHealth’s toll-free number, let alone the science behind hydroxycitric acid. She always referred the interviewer or audience to the company for more scientific information. Linda needed the time to talk about her “cat fight” with Joan Collins in Dynasty. And when we pursued a scientific approach, we arranged to have a doctor do the interview or do it with the celebrity. Still in both cases, sponsors were placed upfront. Ah, the good old days.