Hardwood Floors February/March 2025

By Iqra Mushtaq

2 3 The FTC enforces these truth-in-advertising laws and applies the same standards to any type of advertising, regardless of the method or means by which the advertisement appears. In particular, the FTC focuses on advertising claims that could impact people’s health or finances, such as those related to food, over-the-counter medications, supplements, alcohol, and tobacco, as well as claims related to technology products, services, and the internet. Additionally, every state has consumer protection laws that govern advertisements targeted at residents of that state. As such, companies should review their advertising or marketing materials to ensure they are free from any material representation, omission, or practice that is likely to mislead a consumer. TESTIMONIALS One very effective means of advertising products and services in today’s marketplace is by sharing the testimonials or endorsements of customers. However, before engaging any individuals, such as influencers,

COPYRIGHT/ TRADEMARK INFRINGEMENT When it comes to intellectual property,

companies should be aware of infringing on the rights of other brands, particularly those regarding copyright and trademarks. Copyright is a type of intellectual property that protects original works of authorship as soon as an author fixes the work in a tangible form of expression. A trademark is any word, phrase, symbol, design, or combination of these things that identifies a business’s goods or services. The unauthorized use of another company’s intellectual property, such as its brand name, logo, slogan, design, or creative content, could potentially mislead consumers into believing they are associated with that company’s brand and also can subject the business to significant financial liability for infringement claims. If a company must use another company’s intellectual property in its advertising or marketing, it should ensure that it has obtained permission from the company – preferably in writing. Use of a trademark or copyright license agreement is an effective means to document such permission. Such agreements should address the various terms of use of the intellectual property, including the permissible scope, duration, and geographic area, as well as any compensation the other company will receive in consideration for its right to use the intellectual property.

bloggers, or celebrities, to share their testimonials or endorsements of products or services, companies should ensure that such testimonials or endorsements comply with the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising. Here are a few of the general considerations companies should keep in mind when it comes to testimonials and endorsements: • They must reflect the honest opinions, findings, beliefs, or experiences of the endorser, however, they cannot make any representation which would be deceptive if made directly by the company. • They do not need to be phrased as an exact quote of the endorser, however, the endorsement may not be presented out of context or reworded to distort the endorser’s opinion or experience with the product. • When there is a representation that the endorser uses the endorsed product, the endorser must have been a bona fide user of the product at the time the endorsement was given. • Companies are subject to liability for false or unsubstantiated statements made through endorsements. • Companies also are subject to liability for failing to disclose any material connections between themselves and their endorsers, such as compensation or incentives provided in exchange for endorsements or testimonials.

Companies should ensure that testimonials or endorsements comply with the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising.

ENGAGING CUSTOMERS

the magazine of the national wood flooring association

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