06.04.2010 FTC Regulation on the Use of Endorsements and Testimonials: What Employers Need to Know
An employee of a well-known computer products manufacturer goes home after a long day of work. He plugs his headphones into the latest MP3 player created by his employer. The MP3 player has amazing features such as a large memory for storing media, custom playback settings, and the ability to download the latest albums directly to the player. The employee is quite impressed by his employer’s product, and he honestly believes that this is the best MP3 player on the market. Wanting to tell others about this latest product, he goes online and posts a message on a public bulletin board for discussions of MP3 player technology. The employee’s message will be read by thousands of internet users looking to find the best MP3 player to purchase. Unbeknownst to the employer, under the recently issued Federal Trade Commission’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Guidelines”), the employee may have just exposed his employer to an FTC enforcement action.

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