What must be done if a person is compensated for providing a testimonial in an advertisement?

What must be done if a person is compensated for providing a testimonial in an advertisement?

• A. The fact must be concealed
• B. Compensation details must be disclosed
• C. The advertisement can remain anonymous
• D. Disclosure is optional

Answer: (B)

When a person is compensated for providing a testimonial in an advertisement, it is essential to disclose the compensation details. This requirement is in place to ensure transparency and honesty in advertising practices. By disclosing that the individual received compensation, consumers can better understand the context of the testimonial and assess its credibility. This transparency helps maintain trust in advertising, as it allows potential customers to recognize that the testimonial may reflect a financial incentive rather than an impartial opinion. Failure to disclose compensation can lead to misleading representations, which regulatory bodies aim to prevent to protect consumers. Thus, revealing this information aligns with ethical advertising practices, ensuring that consumers are fully informed when evaluating testimonials.

When a person is compensated for providing a testimonial in an advertisement, it is essential to disclose the compensation details. This requirement is in place to ensure transparency and honesty in advertising practices. By disclosing that the individual received compensation, consumers can better understand the context of the testimonial and assess its credibility. This transparency helps maintain trust in advertising, as it allows potential customers to recognize that the testimonial may reflect a financial incentive rather than an impartial opinion.

Failure to disclose compensation can lead to misleading representations, which regulatory bodies aim to prevent to protect consumers. Thus, revealing this information aligns with ethical advertising practices, ensuring that consumers are fully informed when evaluating testimonials.