Pardon Me, Your Name is Showing (Perception or Reality?)

Before we moved online to a blog format, from 1996 through the end of 2008, Legal Bytes was published as a one-page, monthly newsletter. But even then we had Useless But Compelling Facts, a feature our readers tell us they like! That said, the threads of continuity continue to haunt us. Witness the following:

In March 2004, the Useless But Compelling Fact question asked how “The Doors” got its name. The answer was that Jim Morrison decided to call his band The Doors after reading The Doors of Perception (1954), a novel written by Aldous Huxley about his use of hallucinogens. Huxley was made famous by his 1932 novel, Brave New World.

Although Legal Bytes was not yet a blog back in 2008, we have digitized and uploaded Legal Bytes material from as far back as 2004! Why is this relevant? Because in 2008, Legal Bytes published a short article entitled "The Doors of Perception Can Sometimes Lead to Harsh Reality," about a false advertising case involving the use of Jim Morrison’s name, likeness or other distinctive characteristics, in advertising by a concert band that included two former members of the original The Doors. Now it seems that Jim Morrison’s fans, followers, administrative agencies and regulators continue to seem intent on protecting and restoring Mr. Morrison’s good name.

There is a joke that goes something like, “if you remember the 1960s, you probably weren’t there.” For those of you who do recall, you will remember Mr. Morrison was convicted of profanity and indecent exposure stemming from allegations he exposed himself during a concert at the Dinner Key Auditorium in Miami in 1969. At the time of his trial, other band members insisted he never actually exposed himself, but fans offered conflicting versions of what happened and he was ultimately convicted. That conviction was being appealed by Mr. Morrison at the time of his death in Paris in 1971.

Well a few days ago—more than 40 years from his conviction and at the request of outgoing Florida Governor Charlie Crist—the Clemency Board in Florida unanimously voted to pardon Mr. Morrison (posthumously) for his conviction. Rest in peace.

Reed Smith Analysis of the New FTC Endorsement and Testimonial Guidelines

A few days ago, Legal Bytes alerted you to the fact that the Federal Trade Commission has issued revised "Guides Concerning the Use of Endorsements and Testimonials in Advertising". These revisions update the FTC’s Guides, last modified in 1980, that provide direction to advertisers and agencies regarding compliance with the FTC Act.

John P. Feldman, a partner in our Washington, D.C. office and a key member of our Advertising Technology & Media law team, has prepared (and you can view and download) an Analysis of the New Guides. Of course, no memorandum prepared for general information or a summary of this type can provide legal advice, and you should be careful not to rely on it since everyone’s circumstances and the facts of each situation will differ – at a minimum, based on the type of product or service, the target audience, and the advertising media, among other things. That said, the summary will give you a good overview of what is in the Guides and what is different or updated from the prior Guides.

Of course, if you need specific guidance or need to know more about the FTC Guides, or the implications to social media advertising and marketing or traditional advertising, feel free to contact John P. Feldman, Douglas J. Wood or Joseph I. Rosenbaum, or the Reed Smith attorney with whom you regularly work.

FTC Releases Updated Endorsement & Testimonial Guidelines

Although it will be published in the Federal Register shortly, you can download and read the text of the Federal Trade Commission’s  revised "Guides Concerning the Use of Endorsements and Testimonials in Advertising" issued earlier today, right on Legal Bytes now. As reported previously in Legal Bytes, the final revisions are intended to update the FTC’s guidance, last revised in 1980, that provide advice to advertisers and agencies regarding compliance with the FTC Act.

While the prior guidelines allowed advertisers to use a “results not typical” disclaimer, that is no longer a safe haven from liability, and advertisers will be required to disclose what a consumer should generally expect when purchasing or using the product. Furthermore, any connection that a consumer might not reasonably know between an advertiser and an endorser needs to be disclosed. In recent years, comments by bloggers, through word of mouth, buzz or viral marketing were never addressed in the Guides. The updated version now deals with and provides examples of when these rise to a level of connection requiring disclosure.. For example, if a blogger receives any consideration in cash or in kind (e.g., free gaming console to try) to review products or services, that would now be considered an endorsement that requires disclosure – even if the review remains unbiased. 

The fact that a consumer should be informed about a material connection between the advertiser and the maker of the statements is now firmly embedded in the FTC Guides, even though these cases were always subject to review on a case-by-case basis. Of course, what constitutes a “material” connection will still be subject to a factual determination, but if a company, for example, sponsors research about its products or services (or potentially about the products or services of a competitor, if the results will be used in a comparative ad), then the company must disclose its sponsorship in the ad. Similarly, although consumers may expect celebrities to be paid for appearing in commercials, if an endorsement is made outside that context – for example, on a talk show, at a book signing, at a motion picture premiere, or on Facebook, Twitter or other social media - any material relationships must be disclosed.

The proposed new guidelines were the subject of a seminar, "Trust Me, I'm a Satisfied Customer: Testimonials & Endorsements in the United States", presented by Joseph I. Rosenbaum, at the University of Limerick in July. You can go to the previous Legal Bytes blog post and download a copy of the presentation at any time.  "

Want to know more about the FTC Guides, or the implications to social media advertising and marketing, or traditional advertising? Feel free to contact me or the Reed Smith attorney with whom you regularly work.