Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: June 16, 2015
The Firm
201-896-4100 info@sh-law.comAccording to the FTC, the shoemaker should have more conspicuously disclosed that users tagging their photos with hashtag #wanderingsole were offered a financial incentive to participate in the contest. Because many businesses are similarly unaware of their legal obligations in regards to their company’s social media activities, the FTC recently updated its enforcement guide regarding the use of endorsements. The revised “FTC’s Endorsement Guides: What People Are Asking” addresses the use of endorsements on a number of social media platforms, including YouTube, Facebook, and Twitter.
Under the FTC Act, businesses are subject to liability for false or unsubstantiated statements made through endorsements, or for failing to disclose material connections between themselves and their endorsers. The FTC defines endorsement as any advertising “that consumers are likely to believe reflects the opinions, beliefs, findings or experiences of a party other than the sponsoring advertiser, even if the views expressed by that party are identical to those of the sponsoring advertiser.”
In its latest guidance, the FTC makes it clear that the rules regarding false advertising apply equally to online activities. Although the FTC does acknowledge that it can be more difficult to determine every circumstance in which such rules apply, it does offer a few key takeaways:
Social media contests: The FTC presents the following scenario as an example of a social media contest that fails to properly notify readers that the post was incentivized: “Participants have to send a Tweet or make a pin with the hashtag, #XYZ_Rocks.” According to the agency, it is likely that many readers would not understand such a hashtag to mean that those posts were made as part of a contest or that the people doing the posting had received something of value (in this case, a chance to win the contest prize). As for what does work, the FTC advises that including the word “contest” or “sweepstakes” as part of the hashtag should be sufficient.
Employee endorsements: If your company allows employees to use social media to talk about your products, the FTC advises that you should make sure that the relationship is disclosed to people who read the employee’s online postings about your company or its products. The agency further states that the employees listing where they work on their profile page isn’t enough because not everyone will read the profile.
Outsourcing social media: While many companies use public relations or marketing firms to manage their social media, the FTC makes it clear that your company is ultimately responsible for what others do on your behalf. It recommends making sure that the firm has an appropriate program in place to train and monitor members of its social media network.
Do you have any feedback, thoughts, reactions or comments concerning this topic? Feel free to leave a comment below for Fernando M. Pinguelo and follow the twitter accounts @CyberPinguelo and @eWHW_Blog for timely comments on related issues. If you have any questions about this post or would like assistance with your legal needs, please contact me or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouse Watch – Where Technology, Politics, and Privacy Collide (http://ewhwblog.com).
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger

When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer

New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga

A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena

Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall

A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!