According to the FTC, the rise of social media has caused confusion between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace. It indicated the online world is filled with fake online reviews and other deceptive endorsements about products and services. The FTC warned companies they could face significant civil penalties, up to $43,732 per violation.
Among the acts and practices deemed deceptive or unfair includes the following:
The FTC did state it was not singling out any specific companies that received the letter.
Financial institutions would be wise to review their use of endorsements and ensure they are not unfair or deceptive. If you have more questions about advertising regulations, contact Doeren Mayhew’s regulatory compliance specialists.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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