Episode 25: Examining the FTC’s Final Updates to the Endorsement Guides: What Marketers Need to Know – Part 2 of 2
Sep 8, 2023
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Part 2 of Perfect Balance podcast explores the FTC's concerns with consumer reviews, guidelines for soliciting reviews ethically, the FTC's proposed rule on deceptive practices in product reviews, and tips for brands on presenting consumer reviews without resorting to deceptive practices.
The updated FTC Endorsement Guides now address deceptive practices in consumer reviews, such as manipulating or editing reviews, deleting negative reviews, and featuring only favorable reviews.
Advertisers should use consumer reviews in a transparent and non-deceptive manner, avoiding practices like sorting reviews by favorability ratings and labeling retailer-selected reviews as most helpful, while maintaining uniform application of filters for lawful and appropriate content.
Deep dives
Deceptive Consumer Review Practices
The Federal Trade Commission (FTC) has updated its endorsement guides to include a new section on consumer reviews. In previous versions of the guides, the FTC focused on appropriate disclosure of material connections between reviewers and products. However, the updated guides now address deceptive practices, such as manipulating or editing consumer reviews to distort or misrepresent what consumers think of products. These practices include sorting reviews by favorability rating, deleting negative reviews, featuring only favorable reviews on third-party sites, and threatening reviewers. This expansion of guidance aims to prevent advertisers from using consumer reviews in misleading or deceptive ways.
Concerns with Consumer Reviews
The FTC's main concern with consumer reviews is that advertisers should not use them in a way that misleads or deceives consumers. For example, sorting reviews by favorability ratings, where all five-star reviews come first, can give a misleading impression to consumers who may not read through all the reviews. Similarly, labeling reviews as the most helpful when selected by the retailer and not consumers is considered deceptive. The FTC emphasizes the importance of transparency and ensuring that consumers are not manipulated or misled by the use of consumer reviews.
Moderation and Filtering of Reviews
Advertisers are permitted to filter and moderate reviews to remove unlawful or inappropriate content, as well as reviews unrelated to the product or service. This aligns with the Consumer Review Fairness Act (CFRA), which prohibits sellers from restricting individuals from reviewing their goods or services. However, the filter must be applied uniformly to maintain transparency and prevent deceptive practices. Advertisers should avoid selectively applying filters that could distort consumer perceptions or unfairly boost or suppress reviews. Uniform application of filters helps ensure honest and unbiased consumer reviews.
In Part 1 of this two-part episode of Perfect Balance: An Advertising Law Podcast, host Po Yi was joined by Jesse Brody and Bez Stern, Partners in Manatt’s Advertising, Marketing and Media team, to discuss many of the key updates that the Federal Trade Commission (FTC) made to its Endorsement Guides and the updated FAQs.
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