YouTubers know they have to comply with all the various YouTube rules and regulations. These include Youtube rules related to endorsements of products and sponsored content. However, YouTubers also have to comply with statutes and government regulations, which are often more strict than their YouTube counterparts. The most important set of rules has been issued by the Federal Trade Commission (“FTC”), which is a federal agency. The FTC endorsement and fair advertising rules apply across the U.S. and, as such, are applicable to any YouTuber regardless of where you live.
The FTC advertising rules are long and complex, with quite a bit of nuance. However, the rules can be generalized and boiled down to two compliance keys: disclosure and being truthful.
Disclosure
When you are endorsing a product, service, business, or whatever, the legal key to compliance is disclosure if you are getting paid, affiliated with the product or service, etc. Some YouTubers try to avoid disclosure, thinking that their “endorsement effect” will go down. But, that fear is not supported by research since viewers are sophisticated enough to guess that there is some form of payment being exchanged (even if only something like early access or free products). So, compliance requires a simple statement like “this is a sponsored video” or “I am being paid for this endorsement.”
Further, recent updates to the FTC’s rules and regulations require that the disclosure be IN the video (not in a link) AND be “near in time” to where the endorsement occurs. It may be necessary to disclose more than once. For example, with a sponsored video, a statement should be made at the beginning — this video is sponsored by COMPANY — and also when specific content is directed to the goods, services, or company in question. Something like: “As said, this video is sponsored by COMPANY who makes PRODUCT. I recommend PRODUCT because …” You will need something more interesting, of course, but that gives the idea.
The same general ideas apply where a channel is operated and owned by a company designed to attract consumers. In that kind of case, a verbal disclosure in the video is needed, along with a written disclosure in the description. As can be seen, compliance can be very complex. If you need legal assistance, call us here at Revision Legal at (855) 473-8474.
Be Truthful
The second key to FTC endorsement/advertising compliance is to “be truthful.” In many respects, this is the essence of the disclosure rules: everyone should be honest and upfront. In practice, this means any factual claim must be true. Suppose you say: “I used PRODUCT. I thought it was great.” Here, the first is a factual claim, so it must be true. If you claim to have used the product, then you must have used it (even if only once). The second sentence is your opinion of the produc,t which, being an opinion, is not true or false. Note that sometimes there are implicit factual statements. Those must also be true. For example, you say: “The PRODUCT tastes great.” An implied factual statement is: “I tasted the PRODUCT.” If you claim you tasted the product, then you need to have tasted the product.
Contact the FTC Compliance Attorneys at Revision Legal
For more information, contact the experienced FTC Compliance Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.
