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 Hawaii, as in all states, advertising practices are regulated by both state and federal laws to ensure that claims made in advertisements are truthful, not deceptive or unfair, and are supported by evidence. The Federal Trade Commission (FTC) Act is the primary federal law governing advertising practices, and it requires that endorsements are honest and not misleading. According to the FTC's Endorsement Guides, if there is a material connection between an endorser and the marketer of a product – such as a business relationship or family relationship – that connection must be clearly and conspicuously disclosed in the advertisement. This requirement also applies to social media influencers who must disclose their relationships with the brands they promote to avoid deceiving consumers. Failure to comply with these regulations can result in enforcement actions by the FTC, which may include penalties. It's important for businesses and influencers in Hawaii to understand and adhere to these advertising standards to ensure compliance with the law.