How New FTC Rules Affect Business Centers

The Federal Trade Commission (FTC) last month announced an update to their Guides Concerning the Use of Endorsements and Testimonials in Advertising. These regulations address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. Before this, the Guides were last updated in 1980.

What does this update mean for office business centers? If testimonials are posted on your center's website, they must reflect typical results. If a testimonial is extreme (for example, if one of your clients shares a result or experience that is highly unusual), you can no longer note this just by including "These results are not typical" in small text.  To comply with the new FTC rules, testimonials must describe what the average client will experience.

If your center advertises anywhere, be aware that material connections, such as payments or free products or services, between advertisers and endorsers must now be disclosed. In an advertisement, if your center refers to the findings of a research organization that conducted research sponsored by your center, the advertisement must disclose the connection between your center and the research organization. Violations of the new rules can result in sanctions and possibly lawsuits.

These updated FTC regulations are yet another example of the growing importance of industry transparency. As this trend grows, the emphasis on excellence in client relations and services offerings at executive suites companies is compounded. The more willing office business centers are to be transparent about their business, the more appealing they will be to consumers. What we promise must supported by what we provide.

ALLIANCE Business Centers NETWORK recommends that this is an opportune time to refresh your team with client relations training to ensure that your clients enjoy the very best experience your center has to offer. If you would like more information on business center team training or on how your center can ensure it is compliant with the new FTC rules, please contact The ALLIANCE Academy's Executive Director, Susan Smith, at ssmith@theallianceacademy.com.

View the FTC's story here: http://www.ftc.gov/opa/2009/10/endortest.shtm.

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