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FTC Addresses Deceptive Use of Endorsements in Advertising

January 14, 2022
The Federal Trade Commission recently sent a reminder notice outlining acts or practices that the FTC considers to be deceptive or unfair under the FTC Act.

The Federal Trade Commission (FTC) recently sent a reminder notice outlining acts or practices that the FTC considers to be deceptive or unfair under the FTC Act. The list comes from longstanding FTC case law and does not change the status of the existing law. Among the items listed are: 

1) A third-party endorsement of a product or its performance where the third party has not in fact endorsed it;

 2) Falsely claiming that an endorsement represents the experience, views, or opinions of users of the product;

3) Misrepresenting the endorser of the product as a user of the product; 

4) Using an endorsement without good reason to believe that the endorser still supports the views presented in the endorsement; 

5) Use of testimonials, even if they are genuine, if they are unsubstantiated or make deceptive performance claims about the product; 

6) Failure to disclose the connection between an endorser and the seller of the product that might affect the weight or credibility of the endorsement; and

7) Misrepresenting the experience of the endorser as typical of the experience of ordinary users of the product.

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In this blog post concerning legal and regulatory matters of interest to the mortgage industry, Sandler Law Group (SLG) provides general information and industry observations that are not motivated by or concerned with a particular past occurrence or event, or a specific existing legal problem of which SLG is aware. Nothing published herein is intended to constitute legal advice and the use of the blog post by a reader shall not give rise to an attorney-client relationship with SLG. SLG expressly disclaims any representation of accuracy or reliability as to the content of this blog post, as well as any obligation to maintain such content over time or to ensure it is free from errors. Brad Cope is the attorney responsible for the SLG content of this blog post. Unless otherwise noted, the attorneys of SLG are not certified by the Texas Board of Legal Specialization.

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