Yesterday, the Florida Attorney General announced that her office had reached a settlement with Lifestyle Lift over the company’s advertising practices. Among other things, the AG alleged that the company used testimonials from consumers who had been compensated by the company, without disclosing the compensation. As part of the settlement, Lifestyle Lift agreed to clearly and conspicuously disclose if a person providing a testimonial has been compensated or otherwise has a material connection to the company.
This isn’t the first time Lifestyle Lift has run into problems over endorsements. In 2009, the company entered into a settlement with the New York Attorney General over allegations that the company induced employees to pose as independent consumers and post positive reviews about the company.
These settlements serve as a reminder that companies cannot use made-up testimonials, and that they must clearly and conspicuously disclose if a consumer providing a testimonial has been compensated or otherwise has a material connection to the company.
We will discuss this topic in more detail during our Advertising and Privacy Law Summit on June 27. To inquire about attendance at this invitation-only event, please e-mail firstname.lastname@example.org.