FTC Warns Companies Over Endorsements and Reviews

On October 13, 2021, the Federal Trade Commission (FTC) sent warning letters to more than 700 companies recommending that they review their endorsement and review practices to ensure they comply with the law. The warning letters have put these companies on notice that deceptive and misleading endorsements and reviews can lead to major financial penalties under the FTC’s revitalized use of its statutory Penalty Offense Authority of up to $43,792 per violation. The warning letters are meant to serve as a basis for what could possibly be sweeping civil penalty investigations of advertisers.

The warning letter states that the “FTC staff is not singling out your company or suggesting that you have engaged in deceptive or unfair conduct.” Instead, the FTC is “widely distributing similar letters and the notice to large companies, top advertisers, leading retailers, top consumer product companies, and major advertising agencies.”