New FTC Testimonial Rules - And How They Affect UGC Creators
(Effective October 21, 2024)
Hey there! I've been diving deep into the new FTC rules about testimonials that took effect on Monday, October 21, 2024, and I want to share what I've learned. When I first heard about these rules, I panicked and started turning down jobs I now realize I could have accepted. Let me save you that stress!
This information was initially shared in [this Reddit post] - huge thanks to the original poster for doing the groundwork on this complicated topic!
Let's Be Honest: These Rules Are CONFUSING
Before diving in, I need to say something important: these new FTC rules are genuinely confusing for creators. When I first read about them, I went through stages of panic, confusion, and eventually clarity – but it took hours of research and conversations to get there.
You're not alone if you're scratching your head trying to understand what's allowed and what isn't. The line between "acting in an ad" and "giving a testimonial" can be frustratingly blurry, especially when brands themselves don't always understand the distinction.
Why am I emphasizing this? Because understanding these rules correctly could be the difference between continuing to book jobs and facing potential fines. Many creators are either overreacting (like I initially did) and turning down perfectly legitimate work, or under-reacting and not realizing they need to change their approach.
What's Happening with the FTC Rules?
The FTC has finalized new rules for testimonials that impact many content creators, especially those of us in the UGC (User Generated Content) space. These rules took effect on October 21, 2024. And those fines? A whopping $51,744 per violation. Yeah, that got my attention too.
These rules aren't designed to kill the UGC industry completely, but they change how we approach certain types of content. After researching extensively and connecting with others in the industry, I've gained clarity on what's actually changing and what it means for creators like us.
The Real Target of These Rules
First, let's be clear about who these rules are primarily targeting:
Famous influencers making endorsements without disclosure
AI-generated fake testimonials
False or misleading reviews on sites like Amazon
Celebrities who endorse products they've never used
For those of us creating UGC ads as relatively unknown creators, our situation is different. Let me break it down.
What You CAN and CAN'T Do Under the New Rules
Unboxings - A Major Area of Concern
For unboxings, the FTC has been pretty specific:
✅ You CAN talk about product features
✅ You CAN follow an outline from the brand
❌ You CAN'T claim you used it if you haven't
❌ You CAN'T read scripted personal experiences as your own
The key distinction from the FTC: "The rule won't apply to an unboxing video unless the unboxer talks about or makes implied claims about their own use or experience with the product."
BUT: "If the unboxer is following a script that discusses how the unboxer has had a great experience using the product, when in fact they haven't used it at all, that could violate the rule."
Real-World Examples That Would Now Violate the Rules
Example 1: The Scripted Unboxing Let's say a skincare brand sends you their new moisturizer to unbox. You've never tried it.
❌ Now prohibited: "I've been using this for weeks and my skin has never felt softer!"
✅ Still allowed: "This moisturizer contains ceramides which help strengthen the skin barrier."
Example 2: The First-Person Deception A meal delivery service wants you to create content about their service, but you've never ordered from them.
❌ Now prohibited: "Since I started using this meal service, I've saved 3 hours per week on grocery shopping."
✅ Still allowed: "This meal delivery service comes with pre-portioned ingredients that can save time on grocery shopping."
Example 3: The Amazon Review You're asked to review a product on Amazon that you haven't used.
❌ Now prohibited: The entire practice of paid, fake reviews is explicitly targeted by these rules.
✅ Still allowed: Genuine reviews of products you've actually used, with proper disclosure of any compensation.
Script Reading and Personal Claims
✅ You CAN read a script as an actor in a clearly labeled ad ( Verify with the brand that it will be labeled as an paid ad)
✅ You CAN reenact someone else's real testimonial (the brand is responsible for its authenticity)
✅ You CAN talk about general experiences: "People say they get great sleep from this..."
❌ You CAN'T say: "Hi, I'm [your real name] and this product changed my life!" unless it genuinely did AND nobody paid you specifically to say that
Protecting Yourself as a Creator
When I work with brands now, I've changed my approach:
I avoid speaking in first person about experiences I haven't had
I clearly position myself as an actor for scripted testimonials
For jobs that seem like personal testimonials, I get written confirmation that the brand takes responsibility for the claims
Creative Ways to Navigate the New Rules
Here are some practical approaches I've started using that might help you:
Turn "I" statements into general statements:
Instead of: "I lost 10 pounds using this program."
Try: "This program offers daily workouts and meal plans designed to support weight loss goals."
Use third-person testimonials:
Instead of pretending you're "Sarah from California" who loved the product...
Say: "According to Sarah from California, the product helped her..."
Create a character disclaimer:
Some creators are adding small text disclaimers like "Portrayal of a satisfied customer" for clearly fictional scenarios
This works when you're obviously playing a role, not claiming it's your experience
Document verification requests:
When a brand asks you to make specific claims, ask: "Do you have verification of these claims? I need to ensure compliance with FTC regulations."
I've been surprised by how many brands have appreciated this approach and adjusted their requests accordingly. It shows you're professional and legally conscious.
Social Media Content vs. Paid Ads
The rules are even stricter for organic social media content that isn't clearly labeled as an ad. At least with paid promotions, users understand you might be an actor or spokesperson.
What This Means for Our Industry
These changes will reshape parts of the industry:
Amazon review-for-pay services will likely disappear
Scripts will need to be written more carefully
Brands will need to collect real testimonials before creating content
The emphasis will shift toward authentic experiences or clear acting roles
My Takeaway
The biggest change: Don't make personal claims about yourself unless they're 100% true and weren't prompted or paid for. If you're acting, make sure it's clear to the audience and get confirmation that the brand is taking responsibility for the claims in their script.
I was initially so confused by these rules that I turned down several jobs I could have accepted with a few simple adjustments. Understanding the difference between playing an actor and giving a testimonial has been key to navigating this change.
Why This Matters (Beyond the Fines)
Beyond avoiding those scary $51,744 fines, there's something bigger at stake here. Consumer trust is eroding because of fake testimonials and reviews. These rules are trying to address that erosion of trust.
As creators, maintaining our audience's trust is our most valuable asset. While these rules might feel restrictive at first, they can actually help us build stronger connections with our audiences by encouraging authenticity and transparency.
IMPORTANT DISCLAIMER
I AM NOT AN ATTORNEY. This blog post is NOT legal advice. The information shared here is based solely on my personal research and understanding as a content creator navigating these new rules. This post represents my interpretation of publicly available information and conversations with others in the industry.
For proper legal guidance regarding your specific situation, please consult with a qualified attorney who specializes in advertising law. The FTC rules can be complex, and different situations may require different approaches. I'm simply sharing what I've learned to help fellow creators begin their own research.
These new regulations carry significant penalties, so when in doubt, seek professional legal counsel before proceeding.
FAQ: Common Questions About the New FTC Rules
Can I still create UGC content after October 21, 2024?
Absolutely! You just need to be more mindful about how you frame your content and what claims you make. Remember, you can still be an actor in commercials and demonstrate products.
What's the difference between an ad and a testimonial?
An ad is a commercial message where you can act a role. A testimonial implies your personal experience with a product, which must be genuine. The confusion often happens because UGC content blurs these lines.
What should I do if a brand asks me to pretend I've used their product?
Suggest alternatives, like speaking about the product's features without claiming personal experience, or framing it as "many people find that..." If they insist on fake testimonials, it might be best to pass on the project.
Does this apply to me if I'm not a big influencer?
Yes! These rules apply to anyone creating content for brands, regardless of following size. In fact, smaller creators might be asked more often to create "authentic-seeming" content precisely because they don't look like celebrities.
What if I genuinely love a product I'm being paid to promote?
You can share your authentic experience, but make sure to disclose that it's a paid partnership, and that your positive review wasn't contingent on payment.
If I'm just demonstrating a product without claims, am I safe?
Generally yes. Product demonstrations showing how something works, without making personal claims about results or experiences, are typically fine.
Do these rules apply globally or just in the US?
These specific FTC rules apply to the US market, but many countries have similar regulations about misleading advertising. If your content could be viewed by US consumers, it's safest to comply with these rules regardless of where you're based.
Is this killing certain types of UGC content?
It's not killing UGC, but it is changing certain approaches. The "day in my life with Product X" format will need to be genuine if you're claiming it's your actual routine.
Have you encountered challenges with these new rules? Are you changing your UGC strategy? I'd love to hear your thoughts in the comments below!
Blog by Jennifer Alford, GEN X UGC Creator
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For more from the original Reddit poster, check out the website in the Reddit link at the top of this post. (I am in no way connected to his offers, I just appreciated his explanations and wisdom on the topic!)
