Hello Genius, welcome back to another episode of the Own Your Genius podcast—the space where we encourage you to use your education and experiences to create dope businesses. I’m your host, Brand Attorney LaConya Murray, owner of Off the Mark IP Solutions and founder of MARKEDlegal.
Today, we’re diving into a hot topic that impacts every business owner as we enter the holiday season: Could your testimonials get you fined? We’re talking about the legal risks in testimonials, ad copy, and guarantees. If you’ve ever shared a client success story, written your own ad copy, or made a promise to your audience, this episode is a must-listen. And just in time for the Black Friday marketing madness.
Legal Risks in Testimonials
Let’s start with testimonials. I know, you want to show off those amazing results your clients are getting. But did you know the Federal Trade Commission—the FTC—has strict rules about how you use testimonials in your marketing?
Here’s what you need to know:
- Disclosure Requirements: If someone receives payment, a free product, or even a discount in exchange for their testimonial, you must disclose that connection. The FTC wants your audience to know about any relationship that could influence what’s being said.
- Real and Typical Results: You can’t just cherry-pick your best case and present it like it’s the norm. If you share a testimonial where someone doubled their income, but most clients see a smaller increase, you have to make that clear. The results you highlight need to be typical—or you need to disclose what most people can realistically expect.
- Risks of Misleading Claims: If your testimonials promise the moon but your program delivers a telescope, you could be on shaky ground. Misleading claims, even through someone else’s words, can land you in legal hot water.
I’ve seen entrepreneurs get warning letters—and worse, hefty fines—because they didn’t take these rules seriously. Remember: If it sounds too good to be true, the FTC is probably watching!
Ad Copy Compliance
Now, let’s talk about your ad copy. We all want to write compelling ads, but there’s a fine line between persuasive and problematic.
Here are some practical tips to keep your ad copy compliant:
- Avoid Exaggerated or Unverifiable Claims: Statements like “Guaranteed six-figure launches!” or “Lose 30 pounds in 30 days, every time!” are red flags. If you can’t back it up with hard data—and if those results aren’t typical—don’t say it.
- Use Disclaimers for Income or Transformation Promises: If you share big wins or dramatic transformations, add disclaimers like “Results may vary” or “These results are not typical.” Disclaimers don’t give you a free pass, but they help set realistic expectations.
- Compliance Review Before Publishing: Treat every ad as a legal document. Have someone with compliance know-how review your copy before you hit publish. This extra step can save you from costly mistakes down the road.
Remember, honesty isn’t just the best policy—it’s the law.
Guarantee Claims
Okay, let’s chat about guarantees. We all want our clients to feel confident investing in us, but there’s a right and a wrong way to make promises.
- Set Clear Terms and Conditions: If you offer a money-back guarantee or promise a specific outcome, spell out exactly what’s required to qualify. Be clear on deadlines, necessary steps, and any exclusions.
- Avoid Absolute Language: Stay away from words like “always,” “never,” or “guaranteed success.” These absolutes are nearly impossible to uphold—and they’re an invitation for legal trouble.
- Use “Results May Vary”: This simple phrase makes it clear that everyone’s experience is different. It doesn’t cover everything, but it does help manage expectations and keep you compliant.
I’ve seen businesses face lawsuits because their guarantees were too vague or too bold. It’s not about scaring you—it’s about protecting the brand you’ve worked so hard to build.
Maybe you’re thinking, “LaConya, I’m just sharing my clients’ wins—how could that be risky?” I get it! As entrepreneurs, we want to shout our successes from the rooftops. But imagine being so excited to share a glowing testimonial, only to get a letter demanding you pay thousands in fines. It happens more often than you’d think.
Actionable Tips: How to Stay Compliant
- Ask yourself: Are my testimonials representative of typical results? If not, clarify that for your audience.
- Always disclose any material connections with your testimonial-givers.
- Review every claim in your ad copy. If it sounds too good to be true, tone it down or add a clear disclaimer.
- Spell out the terms for any guarantees, and avoid making promises you can’t keep.
- Have someone with legal or compliance expertise review your marketing before you go live.
Genius, protecting your business isn’t just about registering your LLC or having contracts in place—it’s about how you show up, what you promise, and the stories you tell. The law is there to protect consumers, but when you follow these guidelines, it protects your reputation and your bottom line, too.
Don’t let fear keep you from sharing your clients’ amazing results—just do it the right way. If you found this episode helpful, share it with a fellow entrepreneur and subscribe for more practical, legal wisdom.
Until next time, keep building your business, growing your brand, and owning your genius!
