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 South Carolina, as in all states, advertising practices are governed by both state and federal regulations to ensure that claims made in advertisements are truthful, not deceptive or unfair, and are substantiated by evidence. The Federal Trade Commission (FTC) Act is the primary federal law that regulates advertising to protect consumers. Under the FTC Act, endorsements must be honest and not misleading, and any material connections between an endorser and the product being promoted must be clearly disclosed. This includes relationships where the endorser is paid, receives free products, or has a personal relationship with the owner of the business. The FTC's Endorsement Guides provide additional guidance on how to comply with the law. For influencers and businesses working with influencers in South Carolina, it is essential to disclose any material connection to the brand when promoting products or services on social media or other platforms. Failure to comply with these regulations can result in enforcement actions by the FTC, including fines and other penalties.