FTC Endorsement Requirements for Coaches
The FTC's Endorsement Guides require that material connections between endorsers and businesses be disclosed, and that endorsements reflect honest opinions and typical experiences. These requirements apply to testimonials and success stories used in marketing coaching and course programs.
Testimonials must reflect typical results unless atypical results are clearly disclosed. Success stories showing exceptional outcomes without disclosure that results aren't typical may be deceptive. This matters for processing because marketing claims affect both customer expectations and processor risk assessment.
Material connection disclosure is required when endorsers have relationships with the business beyond being customers. Paid testimonials, testimonials from affiliates, and testimonials from participants who received free access all require disclosure.
Social media and influencer marketing fall under endorsement guidelines. Coaches using influencer promotion, affiliate marketing, or student ambassador programs must ensure appropriate disclosures throughout promotional content.
Processing Implications of Endorsement Compliance
Processor underwriting increasingly considers marketing compliance. Testimonials making extraordinary claims without typical results disclosure create both regulatory and dispute risk. Non-compliant marketing suggests elevated chargeback potential.
Chargeback defense is weakened by non-compliant marketing. When customers dispute based on results not matching testimonials, evidence that testimonials were non-compliant undermines your defense. Compliant marketing supports dispute responses.
FTC enforcement in the coaching industry has increased. High-profile enforcement actions against coaches and course creators for endorsement violations create both regulatory risk and processor awareness. Compliance matters more than ever.
Documentation of endorsement compliance supports processing relationships. Evidence that testimonials are genuine, reflect typical results, and include required disclosures demonstrates the compliance discipline processors prefer.
How Goodlane Group Supports Endorsement Compliance
We help coaching and course businesses understand how FTC endorsement guidelines affect payment processing. While we don't provide legal compliance advice, we understand processor perspectives on marketing risk.
Our review of marketing materials identifies potential processing concerns. Testimonials and success stories that create processor scrutiny deserve attention.
We connect businesses with processors appropriate for their marketing approaches. Some processors have specific policies on testimonial marketing that affect underwriting.
For businesses facing processor concerns about marketing claims, we help address issues and demonstrate appropriate practices.