Episode Summary
In Episode 5, the team shifts from what companies claim to how those claims are advertised, diving into the FTC’s endorsement and testimonial rules. They break down how influencer marketing, gifted products, paid partnerships, employee reviews, and even free trips trigger disclosure obligations, and why the FTC views transparency as essential to preventing deception.
The hosts explain the FTC’s updated 2023 Endorsement Guides, which outline how brands and influencers must disclose “material connections,” including payment, free products, travel, or any benefit that might influence a review. They also walk through real enforcement actions against brands like Sunday Riley, Fashion Nova, and Teami to illustrate how the FTC polices both deceptive claims and deceptive advertising practices.