How to Use Client Testimonials Without Getting Fined: Legal Tips for High-Revenue Online Business Owners
Client testimonials are a powerful tool for marketing your business. For high-revenue online business owners, they can boost credibility, demonstrate results, and attract new clients.
Violating these guidelines can lead to hefty fines, damage to your business’s reputation, and a significant hit to client trust.
Here’s how to use testimonials effectively and legally:
7 Legal DOs and DON’Ts for Using Client Testimonials
❌ DON’T Showcase Only “Superstar” Customers Without a Disclaimer
It’s tempting to highlight your most successful clients to show what’s possible. However, if you feature testimonials from customers who achieved exceptional results, you must include a disclaimer stating that these outcomes aren't guaranteed for everyone. The FTC requires that you make it clear these results are not typical.
✅ DO Ensure Testimonials Are Honest and Not Misleading
Testimonials must reflect the real experiences of your clients. You can't edit or misrepresent their words in a way that distorts their meaning. If you offer incentives like discounts or free services in exchange for testimonials, that fact must be disclosed.
❌ DON’T Use Outdated Testimonials
Make sure the testimonials you're using are up-to-date. If the customer's experience was several years ago, their feedback might no longer reflect your current products or services. Using old testimonials without context could mislead potential clients.
✅ DO Get Written Consent for All Testimonials
Never use a client’s testimonial without their permission. Even if a client leaves a positive review publicly, you should still get explicit consent before using it in your marketing materials. This protects you from any disputes down the line.
❌ DON’T Generalize Testimonials That Don’t Match Your Average Customer’s Experience
If a testimonial only represents the results of a specific niche of customers or only applies under certain circumstances, you must make that clear. Broadly applying unique outcomes to your general customer base can be considered deceptive under FTC guidelines.
✅ DO Include Necessary Disclosures or Fine Print
If your services require clients to take specific actions to achieve results (e.g., following a strict program or implementing advice), be sure to mention that. Testimonials should never imply that results come effortlessly or without significant commitment.
❌ DON’T Ignore Social Media Guidelines
If you or your clients share testimonials on social media platforms, the same rules apply. That includes properly disclosing relationships and ensuring the testimonial is not misleading or exaggerated. In many cases, #ad or #sponsored might need to be included if any incentives were provided.
Why Legal Compliance for Testimonials Matters
Testimonials are a critical part of marketing, especially for businesses that deal with high-value transactions and clients. However, improper use can lead to legal challenges. As a business owner, you need to be aware of the potential liabilities.
If you’re unsure whether your testimonials comply with FTC regulations, it’s essential to get a legal review. Our team of attorneys typically takes 2-4 weeks to evaluate your testimonials and marketing processes to ensure compliance.
Protect Your Business: Hire Legal Experts to Review Your Marketing
As your business grows, your risk of coming under the FTC’s scrutiny also increases. Our team at the AWB Firm is experienced in providing ongoing legal counsel to keep an eye on your compliance and make sure you - and your marketing - stay on the right side of FTC regulations.
If your business is nearing 7-figures in annual revenue and you’re ready for personalized 1:1 support as you expand your marketing and advertising efforts, apply here to work with us. Get the expert legal counsel you need to make sure you’re complying with regulations and protected from FTC complaints before they even happen.
