FTC Proposes Sweeping Changes to Endorsement and Testimonial Guides

The Federal Trade Commission (FTC) is proposing sweeping changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising. The Guides, issued in 1972 and last revised in 1980, are designed to assist businesses and others in conforming their endorsement and testimonial advertising practices to the requirements of the FTC Act. The FTC is requesting public comments on proposals by January 30, 2009.

Proposed changes to the FTC’s Endorsements and Testimonials Guides represent some of the most substantial changes to advertising law in the past 25 years. If adopted and enforced, this policy would prohibit many endorsements that are used today and would impose a policy more restrictive than either the 1972 or 1980 standards.

Kelley Drye’s Advertising Law practice group has prepared a Client Advisory highlighting the key changes.