We absolutely want our customers, leaders in the industry and the very famous to endorse our company and our products and services. Endorsements are highly valued ways to showcase our products and services. We should be shouting our endorsements from the mountain tops.
Full Disclosure
When shouting endorsements from the mountains, in addition to securing written permission from the endorser to use their statement, LexisNexis must disclose if it compensates the endorser in any way. It is not complicated; simply disclose and be transparent that the endorser was compensated. Compensation is not just money; it can include, but is not limited to, providing services for free, dinners, gift cards, etc.
In addition to the LexisNexis and RELX values, the Federal Trade Commission (FTC) also thinks that deceiving consumers is a very bad thing. In a recent settlement with the FTC, the retailer Lord & Taylor settled an action with the FTC on charges that it deceived consumers by paying for advertisements, including an article painted as objective ”without disclosing that the posts actually were paid promotions for the company’s 2015 Design Lab clothing collection.” See https://www.ftc.gov/news-events/press-releases/2016/03/lord-taylor-settles-ftc-charges-it-deceived-consumers-through. In particular, the FTC said “Consumers have the right to know when they looking at paid advertising.”
Key Principles
There are a couple of key principles at play. First, always be truthful and honest in your advertising, as an endorsement must reflect the honest opinion of an endorser. Frankly, that is what we want – unbiased endorsements. Second, if there is a connection between the endorser and the marketer that consumers would not anticipate and that would impact how the consumer values the endorsement, it must be disclosed.
Questions?
If you have any questions, please don’t hesitate to call your legal department contact. This information can also be found on the L&P Marketing Guidelines located on the Global Legal website under North America, Legal Playbook and in the FTC’s Endorsement Guidelines.