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Ad Capsule: Insights from AAF Member Lori Krafte

Paid endorsement? Say so!

If you compensate an endorser, you have to disclose that to consumers except where they would already expect it. You don't need to announce that you are paying the athlete who touts your sports drink on TV - we already know. But you do have to disclose that you are giving free product to bloggers reviewing your new tablet or smartphone. Consumers are more likely to think a blogger is independent, so you're required to make material connections transparent through disclosures.

Lori Krafte
Partner, Wood Herron & Evans

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