plug or endorsement
Definition
A plug or endorsement is when a person or company publicly recommends or promotes a product, service, or business, often in exchange for payment or other benefits. The law requires anyone giving a paid endorsement to clearly disclose that relationship to the public so consumers are not misled into thinking the praise is purely personal and unbiased.
Example
If you pay a popular social media influencer to say great things about your bakery, that influencer must tell their followers they were compensated for the recommendation.
Watch Out
The Federal Trade Commission takes undisclosed paid endorsements seriously and can fine both the business paying for the endorsement and the person giving it.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.