Navigating FTC Regulations on Endorsements and Testimonials: A Guide for Business Owners
- James D. Griffith
- Oct 27, 2025
- 6 min read
In 2024, the Federal Trade Commission (FTC) adopted clear rules that affect online reviews and endorsements. Under the rules and guidance on endorsements and testimonials, businesses could face potential liability for online reviews, endorsements, and other practices that are deceptive or
misleading. But a business can stay compliant and maintain its reputation by understanding the basic principles set forth in the rules and taking practical preventive measures. This post briefly summarizes the key rules on endorsements and testimonials and offer practical compliance tips.
TABLE OF CONTENTS
THE CONSUMER AND THE MANUFACTURER: A Practical Example of the FTC Regulations
To start, let’s look at a scenario involving online reviews and endorsements. This scenario is an abbreviated and paraphrased version of an example in the regulations on endorsement and testimonials. See 16 C.F.R. § 255.0(g)(7). The following is, however, only an example. Whether a specific endorsement or testimonial is deceptive will be evaluated on a case-by-case basis:
Basic Scenario. A consumer regularly purchases a particular brand of dog food. One day, the consumer decides to purchase a more-expensive dog food from the same manufacturer. The consumer posts on their social media account that the more-expensive dog food has made their dog’s fur noticeably softer and shinier, and that the dog food was worth the additional expense.
Was the Consumer’s Post an Endorsement? No, because the consumer does not have any connection to the manufacturer other than being an ordinary consumer. The answer would still be “no” if the consumer’s post was a consumer review on an independent review website.
What If the Review Was Posted on the Manufacturer’s Website? In this situation, the post will be interpreted as an endorsement if the manufacturer chooses to highlight the post in some way.
What If the Consumer Received the Dog Food as a Free Trial Bag? The consumer’s post will not be interpreted as an endorsement if the manufacturer did not do anything to request that the consumer write and post a review. If the manufacturer requested the review, the post will be seen as an endorsement because the free bag of dog food was an inducement to write the review, which affects how potential consumers view the credibility of the review.
What if the Consumer Voluntarily Participates in a Program to Receive Free Products from Various Manufacturers and Write Reviews? Again, this will be seen as an endorsement because the sample of the manufacturer’s dog food was free, and the no-cost sample served as an inducement to write the review.
What If the Manufacturer Provides Coupons for a Year’s Worth of Free Dog Food to an Influencer? Suppose that the consumer’s dog is a “dog influencer” with a social media account and a large following, and the manufacturer asks the consumer to feature the brand in the dog’s social media feed. In this situation, any review would be considered an endorsement even though the consumer could have decided not to feature the dog food. Also, any review would need to disclose how the consumer is connected to the manufacturer and the supply of dog food.
AN INTRODUCTION TO THE REGULATIONS ON ENDORSEMENTS AND TESTIMONIALS
The FTC gets it regulatory authority from the Federal Trade Commission Act of 1914. Under the FTC Act, advertising must be truthful, not misleading, and “substantiated.” A claim about a product in an advertisement is substantiated if it is backed up or supported by some reliable evidence. In short, the FTC Act and regulations adopted by the FTC are intended to promote truth in advertising and protect the public from deceptive advertising and marketing practices. The FTC’s website is a good source of information on regulations affecting advertising and trade practices.
To keep pace with more-recent developments—namely, the internet, online marketing strategies, and influencers—the FTC adopted the new rules on endorsements and testimonials in 2024. The regulations on endorsements and testimonials can be found here. The following is brief summary of some of the key provisions of the rule:
Endorsements – 16 C.F.R. § 255.1: Section 255.1 covers various aspects of endorsements, especially celebrity and expert endorsements. Here are some of the key guidelines in this section:
Honest Opinion, Belief, or Experience.
Endorsements should be based on actual experiences of the person endorsing the product. “Endorsements must reflect the honest opinions, findings, beliefs, or experiences of the endorser” and “may not convey any . . . representation [a statement] that would be deceptive if made directly by the advertiser.”
An advertiser cannot present an endorsement out of context or distort the endorsement that would be inconsistent with the endorser’s opinion or experience.
An endorsement from a celebrity cannot misrepresent the product, the claims about it, or the celebrity’s experience or use of the product. 16 C.F.R. § 255.1(a)-(b).
Disclosure of Relationships.
An endorsement cannot mislead or make an unsubstantiated statement, and any unexpected relevant connection between the advertiser and the endorser must be clearly disclosed in the advertisement.
A celebrity endorsement usually implies payment for the endorsement, but a commercial that appears to be based on a random interview of pedestrian in a large city may not imply payment. If the advertiser paid the pedestrian, but did not disclose it, the endorsement would likely be deceptive. 16 C.F.R. § 255.1(d).
Expert Endorsements.
Experts have knowledge and qualifications in their area of expertise, and consumers can reasonably expect that an expert’s endorsement is based on his/her analysis, knowledge, and experience. Both the advertiser and the expert may be liable if the endorsement is misleading, unsubstantiated, or the product does not perform as advertised.
On the other hand, if the expert asks the advertiser for evidence to support the claims about the product, and the advertiser possesses but does not provide the results of a study that undermines the advertiser’s claims, the expert would not be liable. 16 C.F.R. § 255.1(e) and (h)(3).
Testimonials or Consumer Endorsement Such as Online Reviews – 16 C.F.R. § 255.2: This part of the rule covers endorsements by consumers:
An advertiser must have adequate substantiation to support claims about the product that are made in an endorsement even if the endorsement is made by a consumer. 16 C.F.R. § 255.2(a).
A consumer endorsement or review on an advertiser’s website is interpreted as stating that other consumers will, in general, achieve the same or very similar results as the endorser experienced. 16 C.F.R. § 255.2(b).
An advertisement must use the endorsement of an actual consumer if the advertisement states or implies that the consumer endorsement is from an actual consumer. 16 C.F.R. § 255.2(c).
Advertisers cannot change, suppress, edit, or distort a consumer review or comment about the advertiser’s product. 16 C.F.R. § 255.2(d).
Disclosure of Relevant Connections – 16 C.F.R. § 255.5: This section requires disclosure of relevant connections that may affect how the audience interprets the advertisement:
Basic Rule. Any connection between the advertiser and the endorser must be disclosed in a clear and conspicuous manner if: (1) the connection might be relevant to the weight or credibility of the endorsement; and (2) the connection will not be reasonably apparent to the audience.
What Is a Connection? Connections can be a business, family, or personal relationship, and they include payments to the endorser, and other benefits such as early access to a product, the chance to win a prize, or appearing in a promotion.
When Is Disclosure Required? Disclosure is required when a “significant minority” of the audience does not understand or expect the connection.
TIPS FOR COMPLIANCE
The endorsement and testimonial regulations may seem complex or difficult to understand, but businesses can stay within the legal framework and minimize the chances of a violation. Here are some tips that businesses can follow:
Gather Authentic Feedback: Always ensure that customer testimonials and reviews are based on real experiences. Fake reviews can lead to serious penalties.
Disclose Relationships: If you provide incentives (like discounts or freebies) for testimonials, make sure to disclose these arrangements. Transparency fosters trust with your audience.
Train Your Team: Educate your marketing staff about the FTC regulations. Offering training sessions can help everyone understand the importance of compliance.
Be Clear About Results: When using testimonials to showcase product effectiveness, ensure that the results mentioned align with typical results for most consumers. Avoid exaggerating claims that could mislead customers.
Review Content Regularly: Monitor your advertising material and any consumer endorsements that show up online. Regular checks can help ensure that no misleading content slips through.
Focus on Authenticity: Instead of solely relying on endorsements and testimonials, explore diverse formats like case studies or video testimonials that present real experiences in a compelling way.
CONCLUSION
Understanding and complying with the FTC regulations on endorsements and testimonials helps to safeguard your business and maintain consumer trust. By adhering to the FTC regulations, being transparent, and providing real customer experiences, you can market your products ethically and effectively. Embrace the regulations and compliance with them as opportunities to foster honesty and integrity for your brand.
Attorney James D. Griffith at Endurance Business Law, PLLC, is an experienced business attorney who provide advice and guidance on compliance with FTC regulations and the endorsement and testimonial rule. To set up a paid consultation regarding a legal matter, please call our office at (480) 997-2951 or use the Contact form on this website. If we establish an attorney-client relationship, the consultation fee will be deducted from the fees for our services.
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