Don’t Believe Everything You Read on Twitter -- The Federal Trade Commission’s Regulation of Celebrity Endorsements on Social Media
16 Pages Posted: 23 Apr 2012 Last revised: 18 Aug 2012
Date Written: April 1, 2012
Abstract
This paper will discuss the FTC’s Revised Endorsement Guides and specifically their impact on social media endorsements by compensated actors and celebrities. Because of this impact, it is imperative that entertainment lawyers, agents, and managers understand and heed these Guides to ensure that celebrity clients avoid these marketing mishaps. Additionally, the Guides are important to the entertainment industry due to the explosion of actors and celebrities having financial or management interests in online businesses who may decide to use social media endorsements to promote the business. Part one of this paper will introduce the FTC’s advertising authority and analyze the scope of the revised Guides, focusing primarily on the mandatory disclosure principle. Part two will discuss FTC enforcement based on the requirements in the Guides. Part three of this paper will offer recommendations for celebrities to avoid liability under these new Guides, followed by some concluding remarks.
Keywords: FTC, Endorsement, Social Media, Twitter, Entertainment, Celebrity, Marketing, Advertising, Blog, Mandatory Disclosure
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