Endorser Not Evading the Liabilities for Claims Made in Advertisement.　Discretion Being Necessary to Celebrity Endorser as Regulated by the Fair Trade Commission.

The Fair Trade Commission (hereinafter the “FTC”) approved the regulation governing “endorsement advertisement”. After mid-December 2005, if the advertiser, endorser, advertising agency, and advertising media are involved in making false statements in advertisement, they are likely to bear civil and criminal liabilities in addition to administrative ones.

 

The FTC stated that there has been a prevalent trend toward endorsement advertisement. Enterprises have been engaging celebrities or professionals (or institutions) as the endorsers or spokespersons to represent their products in an advertisement based on actual experiences in using such products to enhance sales volume and fame of their products or services. In this way, however, the consumers’ rights are to be damaged if such endorsement advertisement contains false or misleading claims. In response to such potential consequence, endorsement advertisement should be put under more strict monitor.

 

According to the regulation approved by the FTC, “endorsement advertisement” is defined as such in which anyone, other than the advertiser, presents his or her opinions about, dependence on, findings, or personal experiences in the products or services advertised in verbal expression or other ways. In addition, the “endorser” refers to the person who presents his or her opinions about, dependence on, findings, or personal experiences in the products or services advertised, and such persons are likely to be celebrities, professionals (or institutions), and general consumers.

 

The advertiser should deal with the information in regard to the endorser’s identity or his/her endorsement based on authenticity principle; that is, the advertisement should present the endorser’s actual opinions, dependence, findings, or his/her personal experiences instead of making any claims deceptive or lacking scientific or substantial warrant. (2005.9)

CYJ/CCS