More and more companies are using social media, such as Facebook, LinkedIn, MySpace, YouTube, and Twitter, to market themselves. The Federal Trade Commission (FTC) issued final guidelines in 2009 regarding what employees can say online about their company's products and services. The company can be held liable if their employees are less than honest and a consumer relies on an employee's comments to his/her detriment.
The FTC's Guides Concerning the Use of Testimonials and Endorsements defines an "endorsement" as any advertising message that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser. (The FTC intends to treat endorsements and testimonials the same.) Endorsements must reflect the honest experience or opinion of the endorser, and may not contain representations that would be deceptive, or could not be substantiated, if ...(register to read more)