Expensive Pitfalls of Online Endorsement and Testimonial Advertising


More and more companies are seeking ways to establish an Internet presence to

promote their products and services. The industry phrase the “Twitter Effect” refers to the instantaneous consumer-to-consumer feedback that drives customer decisions, such as instantaneous reviews of a movie on its opening night. Forward-looking companies are increasingly searching for ways to make this instant feedback work to their benefit. A popular path is for a company to have its products reviewed by well-known bloggers or social media personalities, i.e. people who have well established followings on social media networks such as Facebook®, Twitter® or MySpace®. While this may be an effective way to generate “buzz,” online endorsement and testimonial advertising is not without its legal hazards.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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