Celebrities and bloggers face crackdown on deceptive marketing practices

Following a crackdown by US regulators on deceptive marketing practices which will see both businesses and celebrities in the US and even further afield liable for any false statements made about a product, Phil Sherrell, IP and Media Law partner at international law firm Eversheds comments:

"These new rules are likely to come as a shock to many advertisers and to celebrities who endorse products. Any claim made by a celebrity which implies that they have personal experience of a product will now lead to personal liability for the celebrity for any misrepresentation. Advertisers could find themselves liable for product reviews by third party bloggers if, for example, they supply products for review. This would apply even though they have not seen or approved of the reviews. It is surprising to see the USA taking such a strict line on commercial speech.

"Most troubling is the 'long-arm' jurisdiction of the Federal Trade Commission. The new rules cover all advertising, including online, and appear to apply to any products sold in the USA. This could mean that a UK advertiser using endorsements on its .co.uk website could face liability in the USA if its products are also sold there."

For further information please contact philsherrell@eversheds.com