What Does The New FTC Ruling Mean For You?

The US Federal Trade Commission (FTC) has issued a final ruling on social "evidence" for brands. These are updates marketers need to know!

This ruling, provided on August 14, 2024, PROHIBITS:

Here's what these mean to you:

Pay attention to that last one! They all matter, but now, on social media, paying for followers and engagement is punishable and enforceable.

Of course, the question of enforcement comes up – who is going to enforce this? How will they know who is in violation? And, right now, we don’t know. Chances are that most companies will go undetected. I’m sure the FTC will rely heavily on reports of suspicions of violations for them to then investigate but they are not going around reviewing every account online to see if they are compliant.

The idea here is to ensure that brands are properly representing themselves without misleading consumers, investors, etc. And to know that there are protections in place to begin to protect consumers from false advertising.

I should point out that these are regulations being instituted in the US. If your company operates outside the US but advertises in the US or has US customers, please check with your legal counsel on the implications for you.

*Please note I am NOT a lawyer. This is not legal advice. If you believe you are in violation of any of these items and have fake reviews or someone previously bought followers on your accounts, I cannot help you. Please consult with legal counsel.