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 Rhode Island, as in all states, advertising claims must adhere to the principles of truthfulness, non-deceptiveness, and evidence-based substantiation, in accordance with both state and federal regulations. The Rhode Island Deceptive Trade Practices Act (R.I. Gen. Laws § 6-13.1-1) prohibits businesses from engaging in deceptive or misleading advertising practices. At the federal level, the Federal Trade Commission (FTC) Act mandates that advertising must be truthful and not misleading, and any claims must be substantiated. Specialized products and services may be subject to additional regulations that require specific disclosures or claims standards. The FTC's Endorsement Guides provide guidance on the use of endorsements and testimonials in advertising, emphasizing that endorsements must be honest and not misleading. Influencers, or any individuals with a material connection to a product or brand, such as a family relationship or financial interest, are required to clearly disclose these connections when promoting products or services. Failure to comply with these disclosure requirements can result in enforcement actions by the FTC.