Yesterday, the Federal Trade Commission released its revised Guides Concerning the Use of Endorsements and Testimonials in Advertising. The Guides are more than 80 pages long, so we’re still analyzing the changes. However, there is no question that our extensive advocacy efforts have had an effect on the final iteration of the Guides. The commentary included with the changes explains that advertisements using consumer testimonials should be evaluated by the net impression of the advertisement. A footnote in the revised Guides also suggests that in some cases a disclaimer could be sufficient. A more comprehensive legal document will be circulated shortly, but it is clear from a preliminary review that our efforts have not been made in vain. The 35 advocacy meetings on the Hill, 40 constituent meetings at the Fly-In, the testimony before the Senate, two sets of detailed comments and our suggested language were all helpful in presenting our case to the FTC.
However, the new Guides certainly do present some challenges, both to traditional TV marketers and those in social media. ERA is already planning educational opportunities that will provide suggestions for compliance with these changes. We hope the FTC will seize the opportunity to improve the marketplace by presenting to these changes to ERA members at one of our conferences.
Members who attended the Fly-In, supported the Leadership Reception, participated in the Government Affairs Committee, helped to author and review our comments to the FTC, and of course, testified before the Senate, were all instrumental in mitigating some of the more harmful changes. We thank you.
ERA hosted the 2009 Government Affairs Fly-In in Washington, D.C. on April 20 and 21. Over 50 ERA members came together in our nation’s capital to network and meet with members of Congress to highlight their concerns over the revised Federal Trade Commission (FTC) Guides on Endorsements and Testimonials. Attendees participated in over 40 meetings with members of Congress and their staff, enjoyed a dynamic keynote speech by Senator Mark Pryor (D-AR), and networked with the movers and shakers of the D2C industry at two cocktail receptions.
For more video testimonials, click here. To learn more about ERA’s government affairs efforts, click here.
On the evening of April 20 and all day on the 21st, ERA will be hosting the Government Affairs Fly-In. In addition to two fantastic networking receptions, a keynote address by Senator Pryor, and detailed issue briefings, you will have the opportunity to really let lawmakers know about how this issue affects your business.
The Electronic Retailing Association (ERA) was mentioned in a recent AdvertisingAge article for its work with the FTC on the proposed changes to endorsements and testimonials.
According to AdvertisingAge, “Results not typical” or “Experience may vary” used to be enough to protect marketers using testimonial ads to move their wares. But maybe not for much longer.
The Federal Trade Commission wants to toughen the rules for endorsements and testimonials by requiring evidence that results are likely to be typical — a move that would put pressure on purveyors of diet pills and exercise equipment, among others.
The FTC is proposing the change as part of a rewrite of its now-29-year-old guide for endorsements. In part, it’s an attempt to bring the rules up to date in order to meet some of the challenges of the internet and buzz-marketing age.
The biggest change: Advertisers that feature endorsers touting dramatic results will either have to demonstrate that consumers are “likely” to have similar success or describe in the ad what the “generally expected performance” is.
The Direct Marketing Association warned that the change could make it difficult for new competitors to advertise at all, and the Electronic Retailing Association and the Council for Responsible Nutrition said the change could make even well-documented claims difficult to make.
Want to have your voice heard on Capitol Hill? Then we invite you to ERA’s Government Affairs Fly-In on April 20-21, where you’ll have the opportunity to meet with members of Congress and let them know your concerns and opinions on this issue and many others affecting the direct-to-consumer, multichannel marketing industry. Click here for more information.