Not
disclosing paid endorsements.
Not exact matches
In October 2009, the FTC published guidelines for
paid reviews and
endorsements that required reviewers and endorsers, including bloggers, to
disclose the payments.
If the ad contains any
paid testimonial or
endorsement, or if the testimonial or
endorsement is not made by an actual client, it must
disclose that.
Rule 7.1 (c)(2) of the New York Rules of Professional Conduct prohibits payment for an
endorsement — at least without
disclosing that the
endorsement is
paid.
However, in November the U.S. Securities and Exchange Commission (SEC) stated that celebrities use of social media to encourage the public to buy stocks and other investments may be unlawful if they don't
disclose the nature, source, and amount of any compensation
paid, directly or indirectly, in exchange for
endorsement.
RECO requires any
paid endorsement, or designation be
disclosed to the public where and when such an
endorsement or disignation takes place.