Summary of Action
In its comment, TINA.org urged the SEC to include additional limitations in the proposed rule in order to combat the proliferation of deceptive testimonials, which TINA.org frequently sees in other industries. Among other things, TINA.org urged the SEC to require investment advisers using testimonials to disclose all material information that pertains to the testimonial(s) — including the rate of return on investment and the date of the claimed success — in order to allow consumers to accurately assess the likelihood of achieving similar results. TINA.org also recommended that the SEC make clear that testimonials should always disclose typical results and all material connections between the endorser and the adviser. Further, TINA.org suggested that the SEC include specific guidance regarding how to clearly and conspicuously disclose all material information and connections on different media platforms.
To read TINA.org’s full comment, use the menu.