2018 GNYADA Membership Directory

• Deceptive Endorsements. Promotional communications that include purported endorsements or testimonials from experts or consumers who have some connection with the advertiser are deceptive absent a clear and conspicuous disclosure of the nature of the connection. For example, if the endorser has received compensation or free products from the advertiser, those facts must be disclosed. The FTC’s Guidelines on Endorsements and Testimonials are described in more detail below. Social Media Advertising Social media sites offer dealers a new way to connect with consumers through consumers’ principal means of staying in touch with friends, colleagues, and companies with whom they share an interest or have a relationship. But, increasingly, advertisers are using social media to disseminate commercial messages, and government regulators are actively monitoring social media to look for deceptive practices. The suggestions for advertising practices described above, including those described as part of the FTC’s “Dot Com Disclosures” guide, should be reviewed to help advertisers make effective online disclosures. Advertisers on social media must make sure that (1) their claims are truthful and substantiated, (2) all required disclosures are clear and conspicuous, and (3) advertising content is clearly distinguished from non-commercial content. Several of the FTC’s deceptive advertising cases have addressed social media advertisements. The ads came to the FTC’s attention as a result of FTC staffers searching the Internet and finding the ads on sites such as YouTube. Any dealership that plans to launch a social media presence, or whose employees have access to and use such sites, should adopt a Social Media Policy. The Policy should place reasonable limits on employees’use of social media in a way that can be tied to the dealership. Telemarketing. At the federal level, telemarketing is regulated by two agencies and two sets of standards. This regulatory regime is especially complicated because in some cases, the two standards are similar, in other cases, the two standards cover the same subject with different requirements and prohibitions, and in still other cases, one standard may address an issue on which the other is silent. This structure requires careful planning to implement a telemarketing campaign that applies with all applicable standards. The Telemarketing and Consumer Fraud and Abuse Prevention Act (Telemarketing Act) directed the FTC to issue a rule prohibiting deceptive and abusive telemarketing conduct. The FTC’s Telemarketing Sales Rule (TSR) addresses this by, among other things, requiring disclosures, prohibiting misrepresentations, regulating how consumers consent to telemarketing transactions, establishing consumer rights to stop telemarketing calls, requiring transmission of caller ID information, prohibiting certain payment mechanisms, and restricting the use of certain technology in telemarketing. The FTC maintains the national “Do-Not-Call” list prohibiting telemarketing calls to the listed numbers, which include both landlines and cell numbers, subject to exceptions for calls based on a business relationship or express permission. (The FCC also enforces compliance with the national list.) Because several states maintain their own IMPORTANT LAWS AND REGULATIONS Laws Regulating Telemarketing, Email, and Faxing Federal and state laws govern contacting consumers by telephone, fax, or email.

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