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 Montana, 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 substantiated by evidence. The Montana Unfair Trade Practices and Consumer Protection Act prohibits deceptive advertising and marketing practices within the state. Additionally, the Federal Trade Commission (FTC) Act governs national advertising standards, requiring that endorsements are honest and not misleading. According to the FTC's Endorsement Guides, if a business uses endorsements or testimonials in its marketing, they must reflect the honest opinions, findings, beliefs, or experiences of the endorser. Furthermore, any material connections between an endorser and the company whose products or services are being endorsed—such as a family relationship, monetary payment, or the provision of free products—must be clearly and conspicuously disclosed. This requirement also applies to influencers and others with material connections to a brand. Failure to comply with these regulations can result in enforcement actions by the FTC or the Montana Department of Justice's Office of Consumer Protection.