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US FTC Targets Fake Online Reviews, Expanded Liability, With Proposed Endorsement Guides Update

 
• By Lauren Nardella

Proposed changes to the FTC’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising” depict an agency looking to crack down on fake reviews and suppression of negative ones, tighten its definition of “clear and conspicuous” disclosures, and clarify that advertisers, endorsers, intermediaries and platforms all can be held liable for their endorsement roles.

Proposed updates to the US Federal Trade Commission’s Endorsement Guides could put advertisers in the crosshairs for posting fake positive reviews or suppressing bad ones, as well as make disclosures difficult for consumers to miss and add a new section on advertising to children.

In a 19 May notice, the commission says it is considering changes to the Endorsement Guides, formally the “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” to...

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