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Influencer Marketing and the Law Part III: FTC Cautions Against Misrepresentations by ‘Customer’ Endorsements, Testimonials and Reviews

In today’s digitally driven marketplace, testimonials and customer reviews can be an important marketing tool for brands. In marketing, good reviews are the Holy Grail, while bad reviews can sink a product line.

Consumers also want to trust that the testimonials and customer reviews are authentic—in other words, made by real people or celebrities who have actual knowledge of the product or business. The Federal Trade Commission (FTC) does too and requires that customer reviews used as a promotional tool must be truthful and represent real-world experiences of real-world customers. The FTC files enforcement actions against businesses that try to deceive consumers with fake reviews.

In this PLI Chronicle article—the third article in a three-part series about influencer marketing laws and regulations—the author, Advanced Media & Technology partner Nerissa Coyle McGinn, outlines FTC guidance issued for brands and marketers who use endorsements, testimonials and reviews from social media influencers to promote products. Since influencer and customer reviews and testimonials are powerful marketing tools, companies must be above-board about who is providing their opinions and ensure that the reviews consumers see reflect the full range of opinions from actual customers.

Click here to read the full article on PLI PLUS.