The FTC’s authority to enforce consumer protection laws and prevent fraudulent practices against consumers has taken a unique and enhanced turn due to the advent of social media platforms.

1. Revised FTC Guides on Use of Endorsements and Testimonials in Advertising in
Social Media
The FTC’s authoritytoenforce consumerprotectionlawsandpreventfraudulentpracticesagainst
consumershastakena unique andenhancedturndue to the adventof social mediaplatforms.
The agency isauthorizedtoregulate social mediaplatforms,blogs,posts,onlinearticles,endorsements
and testimonials,etc.wheretheycontainunfairordeceptive advertising,fraudulentpromotions,
endorsements,testimonials,orare otherwise materiallymisleading.
As the nationbattlesthe novel coronavirusandall itsnegativeconsequences,the FTChasincreasedits
zeal and investigative effortsintoinvestigatingindividualsandcompaniesallegedlyengagedinunfair
and deceptive practicesonsocial mediaplatformsorfraudulentonline advertising.
It iscritical that all individualsandcompaniesheedFTCguidelines,rules,andregulationsandstayup-to-
date on newchangesbecause anFTC investigationcanleadtosignificantfinesandpenalties,
injunctions,substantial disgorgementorders,licensure removal, andreputational harm.
The FTC and“Endorsements”/“Testimonials”
The Federal Trade Commission(“FTC”) isaU.S. governmentagencythatisvestedwiththe authorityof
enforcingU.S.consumerprotectionlaws,takingactiontoprohibitanti-competitive behaviorinthe
marketplace,andpreventingfraudulent,deceptive,andunfairbusinesspractices.
The Federal Trade CommissionAct(“FTCAct”) isthe primarysource of legislative authoritythatgives
the FTC the powertoinvestigate behaviorthatislikely toharmconsumersorobstruct healthy
competition.Thisauthorityincludesandextendstobehaviorconductedonline—suchasadvertisingon
social mediaplatforms.
Typical investigationsandenforcementproceedingsinclude advertisementsthatare allegedly not
supportedbysufficientdocumentationorevidence;advertisementsbycompaniesthatpromote their
productor service asbeingable todosomething;andadvertisementsthatare allegedlyuntruthful and
misleadingtothe reasonable consumer.Withinthe pastfew decades,investigationsinvolvingonline
platformssuchas social mediahave increased. Clickhere
https://www.natlawreview.com/article/revised-ftc-guides-use-endorsements-and-testimonials-
advertising-social-media