Perkins Coie's Barry Reingold Dicusses FTC Astroturfing Regulations

The FTC is cracking down on so-called "AstroTurf" marketing - seeding the Internet with seemingly Barry Reingoldgrassroots testimonials, reviews and comments that aren't as organic as they seem.

The FTC plans  on updating 29-year-old guidelines on endorsements, making it clear they ban phony online reviews.

 (NLJ) "I think everyone should be concerned," said Barry Reingold, a Washington partner at Seattle-based Perkins Coie who counsels advertisers. He said the FTC's plans have caused "an uproar" in the advertising industry.

 Why? Because the FTC, he said, may be poised to require companies to provide proof to back up any claims about a product or a service. The mandate will be, "If you don't have the scientific proof to back it up, don't say it."

Reingold suggests the FTC may be taking things too far: "In the old days, you could say, 'I lost 50 pounds,' but there had to be a disclosure saying, 'Results vary.' Now, you have to affirmatively say, 'The average consumer will lose two pounds in a week,' and you have to provide statistics."

"I understand [the FTC's] concern, but I think they're imposing a potentially enormous cost on the industry," Reingold said.

Scott Drake interviews Barry Reingold.