Testimonials, Endorsements, & Solicitation Under the New Marketing Rule: Do's, Don'ts, and Disqualification (if You Get it Wrong), Hosted by AIMA
Among the many changes introduced by the SEC's new Marketing Rule, one of the most notable is that the new rule will permit the use of testimonials, whereas the use of testimonials has generally been prohibited under the current advertising rule regime. Clearly, this is a huge shift in mindset that better reflects a world in which social media and online promotion now exist.
However, the use of testimonials under the new Marketing Rule will be subject to certain disclosures and conditions, as the SEC incorporated many aspects of the current solicitation rule into the Marketing Rule by treating paid solicitors under the rubric of testimonials and endorsements. In addition, the Marketing Rule broadens the scope of the current solicitation rule to include non-cash compensation. You can expect the SEC to pay close attention to testimonials, endorsements, and any solicitation arrangements, paid or unpaid. Compliance is key to getting it right.