Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. For some specialized products or services, additional rules apply. If you use endorsements in your marketing, they must meet the standards of the Federal Trade Commission (FTC) Act and the FTC’s endorsement guides. And if your business works with influencers (often social media influencers), or if you are an influencer yourself, or if you have another material connection to a brand (you’re related to the owner), you must disclose those material connections when promoting the brand, as required by the FTC.

In Colorado, as in all states, advertising claims must be truthful, not misleading, and substantiated by evidence, in compliance with the Federal Trade Commission (FTC) Act. This federal law prohibits deceptive or unfair business practices, including in advertising. For certain products or services, there may be additional specific regulations that govern advertising claims. When it comes to endorsements, the FTC's Endorsement Guides provide the framework that must be followed. These guides require that any material connections between an endorser and the product or service being promoted are clearly disclosed. This is particularly relevant for influencers and others with a significant following on social media platforms. If there is a relationship that might affect the weight or credibility of the endorsement, such as a family connection to the business owner or a payment received for the endorsement, this must be clearly communicated to consumers. Failure to comply with these regulations can result in enforcement actions by the FTC, which may include penalties.