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 New Mexico, 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 New Mexico Unfair Practices Act prohibits false or misleading representations and deceptive trade practices. At the federal level, the Federal Trade Commission (FTC) Act mandates that advertising must be truthful and non-deceptive, advertisers must have evidence to back up their claims (evidence-based), and endorsements must be honest and not misleading. According to the FTC's Endorsement Guides, endorsements must reflect the honest opinions, findings, beliefs, or experiences of the endorser. Furthermore, if there is a material connection between an endorser and the marketer of a product – such as a business relationship, family relationship, or monetary payment – this connection must be clearly and conspicuously disclosed in the advertisement. This requirement also applies to influencers and social media personalities who promote products or services. Failure to comply with these regulations can result in enforcement actions by the FTC or the New Mexico Attorney General's Office, including fines and other penalties.