Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. For some specialized products or services, additional rules apply. If you use endorsements in your marketing, they must meet the standards of the Federal Trade Commission (FTC) Act and the FTC’s endorsement guides. And if your business works with influencers (often social media influencers), or if you are an influencer yourself, or if you have another material connection to a brand (you’re related to the owner), you must disclose those material connections when promoting the brand, as required by the FTC.
In Texas, as in all states, advertising laws are primarily based on the principle that advertisements must be truthful, not misleading, and substantiated by evidence. This is in line with the Federal Trade Commission (FTC) Act, which prohibits deceptive or unfair business practices. The FTC's endorsement guides require that endorsements must be honest and not misleading, and if there is a material connection between an endorser and the marketer (for example, a business relationship or family relationship), this must be clearly disclosed in the advertisement. Influencers, who often promote products on social media, must also adhere to these guidelines and disclose any material connections to the brands they are endorsing. Failure to comply with these regulations can result in enforcement actions by the FTC, which may include penalties. Texas businesses must ensure their advertising practices comply with both federal and state regulations to avoid legal repercussions.
