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 North Carolina, 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, such as a family relationship or a payment received, must be clearly and conspicuously disclosed. This is to ensure that consumers can evaluate the credibility of the endorsement. Influencers, who often promote products on social media, must adhere to these guidelines and disclose any material connection to the brands they are endorsing. Failure to comply with these regulations can result in enforcement actions by the FTC, which may include penalties.