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TGA guidance on Testimonials & Endorsements in Advertising

As part of its updated guidelines on testimonials and endorsements in advertising, the Therapeutic Goods Administration (TGA) updated its position on advertising forms including paid testimonials from influencers prior to implementing the new code at the end of June.

Therapeutic goods are not ordinary consumer goods, with consumers of therapeutic goods a more vulnerable consumer cohort. It is appropriate and important that rules are in place surrounding the advertising of therapeutic goods to support informed consumer health care choices.

The guidance explains the code prohibits testimonials from individuals who have received “valuable consideration” for their contribution, including social media influencers, bloggers, and brand ambassadors.

What is valuable consideration?

Valuable consideration is what is given to a person in exchange for a testimonial or for them to otherwise advertise or market the good. That is, the testimonial maker agrees to provide a testimonial in exchange for compensation of some kind.

Examples of valuable consideration given in exchange for a testimonial can include:

  • cash payment

  • provision of services

  • gifts

  • discounts on product

  • free product

  • flights

  • accommodation

  • promise of future benefit.

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