Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: June 16, 2015
The Firm
201-896-4100 info@sh-law.comAccording to the FTC, the shoemaker should have more conspicuously disclosed that users tagging their photos with hashtag #wanderingsole were offered a financial incentive to participate in the contest. Because many businesses are similarly unaware of their legal obligations in regards to their company’s social media activities, the FTC recently updated its enforcement guide regarding the use of endorsements. The revised “FTC’s Endorsement Guides: What People Are Asking” addresses the use of endorsements on a number of social media platforms, including YouTube, Facebook, and Twitter.
Under the FTC Act, businesses are subject to liability for false or unsubstantiated statements made through endorsements, or for failing to disclose material connections between themselves and their endorsers. The FTC defines endorsement as any advertising “that consumers are likely to believe reflects the opinions, beliefs, findings or experiences of a party other than the sponsoring advertiser, even if the views expressed by that party are identical to those of the sponsoring advertiser.”
In its latest guidance, the FTC makes it clear that the rules regarding false advertising apply equally to online activities. Although the FTC does acknowledge that it can be more difficult to determine every circumstance in which such rules apply, it does offer a few key takeaways:
Social media contests: The FTC presents the following scenario as an example of a social media contest that fails to properly notify readers that the post was incentivized: “Participants have to send a Tweet or make a pin with the hashtag, #XYZ_Rocks.” According to the agency, it is likely that many readers would not understand such a hashtag to mean that those posts were made as part of a contest or that the people doing the posting had received something of value (in this case, a chance to win the contest prize). As for what does work, the FTC advises that including the word “contest” or “sweepstakes” as part of the hashtag should be sufficient.
Employee endorsements: If your company allows employees to use social media to talk about your products, the FTC advises that you should make sure that the relationship is disclosed to people who read the employee’s online postings about your company or its products. The agency further states that the employees listing where they work on their profile page isn’t enough because not everyone will read the profile.
Outsourcing social media: While many companies use public relations or marketing firms to manage their social media, the FTC makes it clear that your company is ultimately responsible for what others do on your behalf. It recommends making sure that the firm has an appropriate program in place to train and monitor members of its social media network.
Do you have any feedback, thoughts, reactions or comments concerning this topic? Feel free to leave a comment below for Fernando M. Pinguelo and follow the twitter accounts @CyberPinguelo and @eWHW_Blog for timely comments on related issues. If you have any questions about this post or would like assistance with your legal needs, please contact me or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouse Watch – Where Technology, Politics, and Privacy Collide (http://ewhwblog.com).
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!