The Food and Drug Administration (FDA) and Federal Trade Commission (FTC) issue strict guidelines governing the use of endorsements and testimonials in advertising. While having a celebrity or perceived specialist tout a product or service can be persuasive, absent requisite disclosures, they can also lead to costly litigation. We regularly counsel clients regarding proper disclosures and disclaimers surrounding endorsements and testimonials, as we did for a well-known multi-channel network that entered into agreements with a number of endorsers. We also represented a direct response marketing agency in its placement of a spokesperson in a highly rated long-form infomercial in the fitness industry, including negotiating profit participation, benefits and complex remuneration arrangements.
- Target Marketing, November 3, 2016