Since NCAA student-athletes have been able to sign name, image, and likeness (NIL) contracts, college athletes have entered into endorsement deals to promote various brands, products, and services. NIL deals have included contracts with car dealerships, restaurants, and clothing brands, to name a few. Since July 1st, 2021, student-athletes have submitted their NIL deals to on-campus compliance staff to ensure that the endorsement deals they are signing do not violate any state laws, institutional policies, or NCAA rules. But there is one more regulatory body that student-athletes have to worry about—the Federal Trade Commission.
In addition to state laws, institutional policies, and NCAA rules, college athletes have to follow the Federal Trade Commission’s Guides regulating endorsements and testimonials. The FTC’s authority to regulate endorsements comes from 15 U.S.C. § 45. Because student-athletes are now endorsers of commercial products, their activity is subject to FTC regulation.
The FTC Guides require that any endorsement of a product, service or company must reflect the honest opinions, findings, beliefs, or experience of the endorser in using the product, service or company. Additionally, when an advertisement represents that the endorser uses the endorsed product, the endorser must have been a “bona fide user” of it at the time the endorsement was given. Finally, an endorser must disclose to their audience that they have a relationship with an advertiser.
It is important for student-athletes entering into NIL endorsement deals to consider the FTC Guides on endorsements and testimonials. Student-athletes posting paid advertisements on their social media accounts need to ensure the following: (1) they actually are using the product or service they are promoting; (2) the statements made about the product or service are true and reflect their actual opinions; and (3) there is a disclosure of any relationship between the student-athlete and advertiser, usually shown by using #ad or making a statement about the relationship.
Joshua M. Frieser, Esq. is a college sports lawyer and Principal Attorney at Frieser Legal. His practice is focused on the representation of college athletes and working to solve their unique legal needs. Josh represents college athletes in formal NCAA regulatory proceedings and NIL licensing agreements, as well as in related intellectual property and business planning matters.
