Will The New FTC Rule Cost Your Clients?

New FTC Rules Hit On Dec. 1, 2009!

On December 1, 2009, new advertising standards were issued by the FTC in the form of guidelines regarding the use of endorsements and testimonials. Many folks on the internet, as well as advertisers on television and radio and in newspapers and magazines, have had to adjust their thinking about how to use testimonials. No longer will the good old standby of “Results Not Typical” be enough to keep advertisers safe, now they have to include a full disclosure of what the average or expected results of using a product might be.

Valerie Bertenelli or Kirsty Alley saying they lost a total of 5,432 pounds in six days on Good Ol’ Jenny’s Weight Loss Program with a comment or sub-title of “Results Not Typical” may have to be replaced with a disclosure that the typical client gained 86 pounds a week!

Okay, fair enough. But, stop for a moment and think.

How far does this FTC thingy reach?

Are your clients encouraging their employees to promote the company in blogs, on forums and in social media like Twitter or Facebook?

If they are, then you need to encourage them to be very, very, careful. Maybe even seek the advice of an attorney who is familiar with the new FTC rules. (Ah, now here is a chance for you to start working on building referral partners.) If they don’t know one, or you don’t think they will, then by all means, refer them to one of your referral partners who is familiar with the new FTC advertising guidelines.

Here’s to building your referral network!
Kirk

– If you don’t have a referral partner, use the contact form in the left sidebar to send me a note. I have a couple of national firms who can help, and who would make excellent referral partners.