By Alan Graner
When you read a product review in a publication or blog, you have the right to expect an honest, expert opinion.
But what if the reviewer owns stock in the company? Or receives the expensive product free?
How honest are their reviews? Were the reviews favorable because the product really are good? Or because the reviewers have a personal stake in giving a favorable opinion?
According to the Federal Trade Commission, you have a right to know. And that requires full disclosure.
The FTC Guides to full disclosure
On December 1, 2009, the Federal Trade Commission (FTC) published its Guides Concerning the use of Endorsements and Testimonials in Advertising, its first update since the 1980 Guides. However, these are guides, not laws. It’s up to the FTC to determine what an endorsement is and whether it violates the Guides.
The Federal Trade Commission defines an endorsement as basically any advertising messages consumers believe truly reflect the endorser’s opinions and experiences. The FTC Guides considers testimonials the same as endorsements.
According to Section 255.5 of the Guide:
Any connection between an advertiser’s product and its endorser that could affect the endorsement’s weight or credibility must be fully disclosed. This connection may be in the form of payments, royalties, stock, prizes, free products, etc.
A drug manufacturer funds the research on its new wonder drug by an independent testing organization. Even though there is no interference by the manufacturer, even though the organization controls how the test is designed and conducted, the manufacturer must disclose it funded the research.
A movie star appears in an ad stating she prefers Brand X frozen pizza because it tastes better. If she regularly eats it and the endorsement reflects her honest opinion, the advertiser doesn’t have to disclose she’s being paid because the audience would ordinarily expect such payments.
A tennis star appears on a talk show. When asked the reason for his sudden rise in the rankings, he attributes it to the corrective eye surgery at XYZ Clinic. If he’s under contract as a paid public spokesman for the clinic, he must disclose that so the audience can determine for itself how credible his endorsement is. If he details the surgery and its aftermath, and the audience thinks this is typical for people undergoing the same surgery, the clinic must substantiate his claim.
The manufacturer of a new video game system sends a free version to an expert blogger, who tests it and writes a favorable review. Since the system is valuable, it’s considered a paid endorsement. It’s the manufacturer’s responsibility to advise the blogger to disclose she got the system for free and have procedures in place to monitor her postings for compliance. (This is why so many reviewers return the products they review.)
What are your experiences with full disclosure laws?
Image: Stonebridge Lithograph Co.
Alan Graner is Chief Creative Officer at Daly-Swartz Public Relations, an Orange County, CA marketing communications firm. For honest endorsements and testimonials that don’t violate FTC Guides, email Jeffrey Swartz at jeffreyswartz@dsprel.com.
