Today in the Phoenix Business Journal there was an article in regards to an FTC fine made to the company LifeLock. The fine was due to the type of advertising LifeLock was doing, and the FTC felt that there were unsubstantiated claims being made. The company was using the word “guarantee” which is a red flag when it comes to advertising compliance.
In light of the FTC changes to their guidelines, we have seen an uptick in client inquiries regarding advertising messages and questions about how to stay compliant. Mostly our clients in the medical arena and financial areas are unsure of what they can say especially when it comes to social media. The FTC will continue to send out warning letters to any company that violates the new guidelines. If changes requested are not made, then companies can expect to receive a fine from the regulators. LifeLock is just an example of how companies now have to change their advertising, marketing and social media policies in order to stay compliant. Our company continues to help navigate our clients towards compliant marketing and advertising. Understanding what the regulators are looking for is key.
