CLAIRE-IFICATION

IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR Are you a member with a question? Contact Claire to find the answer at 800-998-9644, ext. 604 or ClaireP@IABforME.com.

QUESTION:

Can we advertise our agency using customers’ online reviews? What if we send a gift card to those who provide online reviews?

ANSWER:

This question may be best answered by “proceed with caution.”

There is nothing fundamentally wrong with touting customer satisfaction that has been properly measured. When the reviews have been obtained with the use of incentives, however, the impartiality of the answer can be called into question. Therefore, publication of the results would require some disclosure of the incentive or “material connection” between the person providing the review and your agency. When it comes down to it, it stands to reason that someone expecting a gift card is more likely to feel compelled to give you positive feedback.

Case in point, in April 2015 the Federal Trade Commission (FTC) issued a decision that has a direct bearing on the use of “incentivized reviews.” The case alleged that Amerifreight, Inc. represented to consumers that their products were highly rated or top ranked based on its customers’ unbiased reviews, while the company failed to disclose that it paid consumers to post reviews. The FTC’s decision and order barred Amerifreight from “deceptively touting online consumer reviews and failing to disclose incentives it provided to reviewers.”

Bottom line, if you intend to use your customers’ online reviews to make certain advertising claims, it is better to use reviews that are provided without incentive. In addition, any “material connection” between the agency and the reviewer that could influence the review must be clearly and prominently disclosed. A material connection is something that affects the weight or credibility of the endorsement and that would not be reasonably expected by consumers, such as a free gift or other advantage, or the fact that the reviewer is employed with the agency.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.