Final answer:
True, companies are required to disclose when they provide products to online reviewers. The FTC's endorsement guides stipulate that material connections between endorsers and advertisers must be transparent. This ensures consumer trust in the authenticity of online reviews and prevents deceptive online advertising practices.
Step-by-step explanation:
Companies must disclose when they provide products to online reviewers. This is true. The Federal Trade Commission (FTC) mandates that such disclosures are made to ensure transparency and maintain trust in online reviews.
The FTC's endorsement guides are quite clear that if there is a material connection between an endorser and an advertiser—meaning a connection that might affect the weight or credibility of the endorsement—then that connection should be clearly disclosed.
When engaging in online advertising or influencer marketing, the relationship between the product or brand and the person endorsing it must be apparent to consumers.
This is part of the FTC's broader mission to prevent deceptive advertising and ensure that consumers have the information they need to make informed decisions.
Therefore, paid ambassadors, influencers, or reviewers must clearly disclose if they've received compensation or free products in exchange for their review or post.
Phrases such as "sponsored," "promotion," or "ad" can denote this kind of relationship in online content.