Here are the resources you need to know about the new $51,000+ fines for each occurrence you need to know and what we can do to work together to be compliant. Effective from Oct. 21st 2024
UGC creator needs to be an 'actor' not themselves. (think standard commercial).
Any claims made would need to be accurate coming from the advertiser and copywriter and not the creator.
UGC creator can't do a 'testimonial' and be told what to say.
UNLESS they are re-enacting an actual testimonial.
UGC creator CAN do a testimonial or unboxing with their own opinion if they are not guided what to say AT ALL. It needs to be a REAL review both good and bad.
Brand and Agency are responsible for the accuracy of ALL CLAIMS if they provide a script and the creator can't play 'themselves'. Creator needs to be playing a role as an actor as someone else. It needs to be run as a PAID AD.
If the UGC video is for a website the brand is responsible for the veracity of the testimonial and proper disclosures online.
The creator can't make personal claims unless completely un-prompted. The FTC rules are meant to get rid of fake reviews online and AMAZON in particular.
Also, to stop FAKE AI reviews with non-existent people that viewers think are real personal experiences.
Paid Promotions have some room because the viewer should understand its an actor in a commercial and not a REAL testimonial.
In short. THE TESTIMONIAL NEEDS TO BE REAL.
Easy! Best to keep statements to general facts about the product instead of personal experience of saying. "I DID THIS and FELT THIS".. instead say "MANY PEOPLE FEEL THIS WHEN USING PRODUCT A" and talk about the products features and how it solves problems in general.
If you NEED to use a personal style example in the UGC Video ad and its an ADVERTISMENT (which give you more leeway) then the Creator needs to be playing a role as someone else. If you include examples of earnings or ANY claims the burden of legality falls on the BRAND and script writer and Agency. Just make sure what you have the creator say is TRUE. They are simply an actor.
If you want an unboxing or review you can't tell the creator what to say at all.
EXCEPT if they are unboxing and going over your products valuable benefits you list and NOT saying its from personal experience.
Dear Dave,
Thank you for your email.
You ask whether the new Consumer Reviews and Testimonials Rule will apply to when ”an actor is playing a role. ‘This detergent really gets my white's clean.’” If the commercial is an obviously fictional dramatization, then the actors in it are not giving testimonials. If consumers seeing the commercial could reasonably think that the actors are describing their personal experiences with the product, then the actors would be giving testimonials. Those testimonials are not covered by the rule if the business that hired the actors to portray testimonialists has received those testimonials from real people and those real testimonials are compliant with the rule, i.e., that the underlying testimonial isn’t itself fake or false.
Furthermore, even if the testimonial in a commercial is fake or false, as long as the actor isn’t playing themself, I don’t think that the actor would be personally liable under the rule. (By contrast, “famous people” or “influencers” who are playing themselves could be personally liable for a fake or false testimonial even if it’s scripted by someone else.)
You also ask about “unboxing videos where the user gets sent a product and a script and they go through the products features and talk about benefits in a positive light.” People creating unboxing videos are presumably speaking for themselves, e.g., any opinions expressed are their own opinions. Section 465.2 of the rule, which addresses fake and false testimonials, only applies when a testimonialist misrepresents having used the product or service or misrepresents their experience with it. So the rule won’t apply to an unboxing video unless the unboxer talks about or makes implied claims about their own use or experience with the product. For example, if the unboxer is just describing the product and giving opinions about a product’s features, the rule doesn’t apply.
But if the unboxer does talk about their own use or experience with the product, then the rule would apply if they are misrepresenting such use or experience.
For example, if the unboxer is following a script that discusses how the unboxer has had a great experience using the product, when in fact they haven’t used it all, that could violate the rule.
I hope that this is helpful.
Very truly yours,
Michael