Manatt Advertising, Marketing and Media Partner Jeffrey Edelstein wrote an article for Law360 on the Federal Trade Commission’s (FTC) recent proposed trade regulation rule, which prohibits marketers from using deceptive practices in their product reviews and testimonials.
In the article, Edelstein provided background on the proposed rule, entitled "Trade Regulation Rule on the Use of Consumer Reviews and Testimonials," which was published immediately following the FTC’s final revised Guides Concerning the Use of Endorsements and Testimonials in Advertising. He explained how the rule aims to increase honesty and transparency surrounding consumer reviews, and noted that it would also provide the FTC with a direct path toward monetary recovery against marketers engaging in these deceptive practices. He concluded by exploring the significance of the proposed rule, stating, “Companies, particularly those that hire third parties such as advertising agencies and promotion firms to conduct their marketing, should closely monitor their systems for collecting and managing consumer reviews to ensure compliance with the FTC's proposed rule.”
Read the full Law360 article here.
Read more about the proposed rule and its implications in Edelstein’s related newsletter here.