Bloggers Need To Beware Of Violating FTC Deceptive Practice Standards When Making Endorsements
The FTC has handed down an advisory opinion that may have dire consequences for companies that employee individuals who are involved in blogging and promote those companies products or services while blogging. According to the FTC, this may hold true even if these employees are undertaking this blogging on their personal time and even if company management has no idea what is going on. The FTC advises that such a blogger must make readers aware of his or her connection with the company whose products or services he or she is endorsing.
The FTC has concluded in this advisory opinion that these actions may constitute deceptive business practices in violation of the FTC Act. The FTC Act sets forth a deceptive business practice as being:
1. A practice that represents or omits material information that likely would mislead reasonable consumers under the circumstances; and,
2. A practice that involves a representation or omission that is of material importance to consumers
The FTC continually and regularly has found that a seller’s failure to...
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