FTC Investigation into a Blogging Promotion Holds Lessons for Advertisers

Last year, the Federal Trade Commission released a new version of its Guides Concerning the Use of Endorsements and Testimonials in Advertising. The new Guides contain various provisions that apply to messages in social media, such as blogs, word-of-mouth marketing, and other promotions in which companies encourage consumers to speak on their behalf. This article analyzes a recent FTC investigation to determine whether AnnTaylor Stores Corporation had violated the Guides in the context of a blogging promotion, and it provides lessons for companies that use bloggers or other endorsers to advertise.