Testimonial Statements

News & Analysis as of

Is Marriage a “Material Connection”? The FTC Challenges an “Independent” Expert Based on Marital Status

Medical endorsements can be powerful selling tools for health care products. But if a medical professional has a connection to the company marketing the products that would be material to consumers in evaluating the...more

Can Using Social Media Lead to a Lawsuit? (Part 2)

In part 1 of this blog series, I discussed the potential legal implications of social media as it pertains to defamation, privacy rights, and ownership rights. As we pick back up with our discussion, I want to address the...more

New York Appellate Division Strongly Supports In-House Law Firm Privilege Claim

In Stock v. Schnader Harrison Segal & Lewis, 2016 WL 3556655 (N.Y. App. Div. 2016), the First Judicial Department of the New York Appellate Division upheld, in a case involving a former law firm client seeking to sue the...more

Recorded Statements: Do I Have to Give One?

If you’re injured in an auto accident, a slip and fall, or bitten by a vicious dog, and you report the incident to your insurance company, you will likely be asked to make a statement. These statements are taken — and...more

More Guidance for Advertisers and Influencers to Navigate Online Reviews and Endorsements

Late last week, the International Consumer Protection and Enforcement Network (“ICPEN”) published three sets of guidelines covering online reviews and endorsements. Why does this matter? ICPEN is an informal network of...more

Social Media Guide for Lawyers v. 3.0: Social Media Marketing and Ethics Guide

One major roadblock preventing a lawyer from engaging in social media marketing is the uncertainty surrounding how the advertising ethics rules apply to social media. This section will set forth the applicable lawyer...more

Recent FTC Settlements Spotlight Hidden Ways to Hook Unwary Consumer

Brands of all kinds are increasingly using “influencers” or “brand ambassadors” to promote their brand’s products in blog posts and on social media platforms. But no matter whether they are style influencers with a fierce...more

Advertising Law - April 2016 #3

SPECIAL FOCUS: #Twitter at Ten: Ten Times Twitter Made Ad Law History - Ten years ago the world was introduced to Twitter, a microblogging site offering users the chance to express themselves just 140 characters at a...more

FTC Complaint Highlights the Need to Disclose Material Connections in Ads

The recent complaint highlights the importance of clearly and conspicuously disclosing material connections between advertisers and paid influencers, including in social media posts or in native ads. ...more

EEOC Issues Nationwide Policy of Providing Charging Parties with Employers' Complete Position Statements

Most employment discrimination cases begin with agency action, in which the aggrieved employee brings his/her claim or Charge to the Equal Employment Opportunity Commission (EEOC), or its state or local agency equivalent, for...more

Can You Hear Me Now? NAD Finds Scientific Evidence Insufficient to Support Dietary Supplement’s Claims of Ear Discomfort Relief

Clarion Brands, LLC recently received an earful from the National Advertising Division (“NAD”) about its marketing of the dietary supplement Lipo-Flavonoid Plus. Clarion had been marketing Lipo-Flavonoid Plus with advertising...more

Keeping it Legal: Managing FDA Compliance for Consumer-Generated Content

Social technology platforms allow manufacturers to leverage consumer-generated content about their products (“CGC”) more easily than ever before. Such CGC generally takes the form of written testimonials and product reviews...more

A Compilation of Enforcement and Non-Enforcement Actions

Non-Enforcement - SEC Decides Against Mounting an Appeal in Koch Ruling - The July 2015 ruling by the D.C. Circuit Court in Koch v. SEC will apparently not be challenged by the SEC. The Court ruled in that...more

Financial Services Quarterly Report - Third Quarter 2015: Developing and Maintaining a Modern U.S. Compliance Program

When the SEC adopted Rules 38a-1 under the Investment Company Act of 1940 (Investment Company Act) and 206(4)-7 under the Investment Advisers Act of 1940 (Advisers Act) in 2003 – which required registered funds and registered...more

District Court Rules That Smartphone Passcodes Are Testimonial; Protected by Fifth Amendment

In Securities and Exchange Commission v. Huang, the district court held that the Fifth Amendment protected two former employees against having to disclose their personal passcodes for company-issued smartphones to government...more

T.J. Simers Discrimination Trial: Are You Paranoid If They Really ARE Out To Get You?

A psychologist retained by the Times testified this week that Mr. Simers scored “very high” for paranoia on the Minnesota Multiphasic Personality Inventory. His test results showed that he was “overly sensitive to criticism,”...more

FTC Issues Updated Guidance on Endorsements Compliance

Companies should revisit their policies for influencer programs for compliance with the updated guidance. Online advertising and promotion first attracted the attention of the Federal Trademark Commission (FTC) in 2009....more

The Guide to Social Media and the Securities Laws

The growing use of social media has created challenges for federal securities regulators, who must enforce antifraud rules that were written at a time when the prevailing technology was the newspaper. This Guide...more

Getting the Deal Through - Advertising and Marketing 2015: Canada

Legislation and Regulation - What are the principal statutes regulating advertising generally? The principal federal statute regulating advertising in Canada is the Competition Act, which is a law of general...more

Q: What’s Different About the FTC’s New Endorsement Q&As? A: Lots.

The FTC recently released a new version of its Q&As on the Endorsement Guides. The old Q&As, released in 2010, were about seven pages long. The new ones just about double that. The revisions and additions reflect many of the...more

FTC updates Q&A on Endorsement Guides – changes affect all types of media and endorsement: 5 takeaways

For the first time since 2009, the FTC has updated the Q&A on its Endorsement Guides. The Endorsement Guides represent administrative interpretations of laws enforced by the FTC, specifically the applicability of Section 5...more

Updated FTC Guidance on Endorsements and Testimonials in Social Media Advertising – Does Your Advertising Pass Muster?

In recent years, companies have increasingly relied on social media platforms to promote their products, often featuring testimonials and endorsements from consumers and public figures as well as other user-generated content....more

AdCode 2.0: Better Business Bureau Updates Advertising Code to Keep Up With Technology

The Better Business Bureau announced last Thursday that it has amended its Code of Advertising to address the new and evolving ways in which advertisers reach consumers through technology. The Better Business Bureau is the...more

SEC “Likes” Social Media for Investment Advisers

The SEC staff views social media as a useful tool that helps consumers conduct their own due diligence on investment advisers. In a recent Investment Management Guidance Update, the staff stated that, under certain...more

"SEC Issues New Guidance for Investment Advisers Regarding Use of Social Media Testimonials"

On March 31, 2014, the Division of Investment Management (the “Division”) of the Securities and Exchange Commission (the “SEC”) issued long-awaited guidance regarding investment advisers’ use of public commentaries on social...more

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