FTC Warning About Fake Reviews and Misleading Endorsements

The Federal Trade Commission (FTC) recently put more than 700 companies on notice that they could incur significant civil penalties — up to $43,792 per violation — if they use online testimonials, endorsements, or reviews in ways that could mislead consumers.

Among other things, failing to adequately disclose a material connection with a third-party endorser (e.g., influencers) on social media platforms such as Instagram, TikTok, Twitter or Facebook can mislead consumers. Accordingly, wineries should remain vigilant about how they portray testimonials, endorsements and reviews of their products online.

Go here for a discussion of the FTC’s notice and a few steps that our members can take to help ensure they are complying with the law.