FTC Endorsement FAQ – I’m opening a new restaurant. To get feedback on the food and service, I’m inviting my family and friends to eat for free. If they talk about their experience on social media, is that something that should be disclosed?

Compliance > Advertising / Marketing Misc. > FTC Endorsement Guidelines
Q:  I’m opening a new restaurant. To get feedback on the food and service, I’m inviting my family and friends to eat for free. If they talk about their experience on social media, is that something that should be disclosed?
 
A:  You’ve raised two issues here. First, it may be relevant to readers that people endorsing your restaurant on social media are related to you. Therefore, they should disclose that personal relationship. Second, if you are giving free meals to anyone and seeking their endorsement, then their reviews in social media would be viewed as advertising subject to FTC jurisdiction. But even if you don’t specifically ask for their endorsement, there may be an expectation that attendees will spread the word about the restaurant. Therefore, if someone who eats for free at your invitation posts about your restaurant, readers of the post would probably want to know that the meal was on the house.
 
 
This FAQ was pulled from the Federal Trade Commission’s website, as of the date of this article.  Additional information may be found here: https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking
 

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