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Function Health

Promotion Endorsement Policy

PROMOTION ENDORSEMENT POLICY

This Promotion Endorsement Policy sets forth Function Health, Inc.’s, and its affiliates and subsidiaries (collectively referred to herein as “Function”, “we”, “us”), requirements for individuals and entities promoting Function or our products or services pursuant to the applicable agreement (herein referred to as “Collaborator”) and all individuals acting on behalf and/or with the authorization of Collaborator. Function may update this Policy from time to time in its sole discretion.

Key Laws, Rules, Regulations & Guidance Governing Social Media Endorsements – An Overview

  • Section 5 of the Federal Trade Commission Act – Section 5 of the Federal Trade Commission Act (“FTC” and “FTC Act”) protects consumers from deceptive advertising by prohibiting “unfair or deceptive acts or practices in or affecting commerce.” An unfair practice is conduct which causes or has the potential to cause consumers to make misinformed purchasing decisions. Deceptive practices are practices which involve a material representation, omission or practice likely to mislead a consumer into making a purchasing decision that they would not have made absent the deceptive conduct.

  • FTC Endorsement Guides – The FTC Endorsement Guides (“Endorsement Guides”) embody the truth-in-advertising principle that endorsements must be honest and not misleading. The Endorsement Guides contain information about disclosure of “material connections” between advertisers and endorsers and the application of the FTC’s consumer protection principles to social media and influencer marketing. The Endorsement Guides may be found on the FTC’s website.

Collaborator is responsible for making these disclosures and carefully reviewing and being familiar with the FTC Act and the Endorsement Guides, as well as complying with all laws, rules, regulations, and guidelines against deceptive advertising.

Material Connections and Compliance with FTC Disclosure Guidelines

In order to comply with the FTC’s Endorsement Guides, each of Collaborator’s endorsements must clearly, obviously and unambiguously disclose Collaborator’s “material connection” with Function. A “material connection” is one which would impact the weight or credibility that Collaborator’s audience gives the endorsement. “Material connections” include personal, family, or employment relationships or a financial relationship - such as free products and/or payment (including cash and equity) from Function in exchange for Collaborator’s product/service endorsement.

Collaborator must comply with the FTC Act, as well as the Endorsement Guides and disclosure obligations, throughout the term of Collaborator’s relationship with Function.

Requirements for Effective Disclosures

In order to comply with the FTC’s Endorsement Guides, Collaborator must ensure that Collaborator’s disclosure is clear and easy for their audience to read and understand. In addition, Collaborator must prominently display the disclosure with the endorsement post.

Collaborator must also account for the medium and social media platform that they use for the product/service endorsement to ensure that the disclosure is effective and compliant with the Endorsement Guides. For endorsements that feature still images, Collaborator should superimpose the disclosure over the picture and allow the viewer sufficient opportunity to notice and read the disclosure. For endorsements that feature videos, Collaborator should make the disclosure orally and also superimpose the disclosure language over the video itself. For endorsements that are live streamed, Collaborator should make the disclosure orally and repeat the disclosure periodically throughout the live stream to ensure that viewers who see only part of the stream receive the disclosure.

Regardless of the social media platform used, Collaborator must use simple and clear language and/or hashtags that would be difficult for Collaborator’s audience to miss. Below are a few examples modeled on FTC guidance:

  • “Thank you Function Health for the free product”
  • “Paid partnership with Function Health”
  • “In collaboration with Function Health”
  • “Function Health Promoter”
  • “Function Health Ambassador”
  • “Function Health Sponsorship”
  • “Function Health Advertisement”
  • “Sponsored by Function Health”

Collaborator must not use short-form or abbreviated terms like “spon” or “collab,” which could potentially mislead the viewer or reader. When using hashtag disclosures, Collaborator must use language that clearly identifies Collaborator’s relationship with Function.

At all times, Collaborator must clearly and conspicuously disclose Collaborator’s true identity and that Collaborator has received compensation, product and/or other consideration from Function proximate to any mention by Collaborator of Function or Function’s products or services.

Function Product/Service Collaborator Endorsement Protocol – Requirements for Responsible Use

Function and Collaborator both have an obligation under the FTC Act to protect consumers from deceptive advertising by prohibiting unfair or deceptive acts or practices in or affecting commerce. In addition to the necessary disclosures, Collaborator must ensure that their endorsement is truthful and based on their personal experience with the product/service they are endorsing.

Collaborator must comply with the following protocol:

  • Collaborator’s endorsement must reflect Collaborator’s honest opinion, finding, belief and experience with Function’s brand, product or service.
  • Collaborator’s endorsement must not make any claims that would be false, misleading or unsubstantiated information if Function made them directly.
  • Collaborator cannot discuss experience with a product/service that they have not personally tried.
  • Collaborator is prohibited from using fake information (including, but not limited to, a fake alias or fake post) when promoting Function’s brand, product or service.

Collaborator must promptly correct any false, inaccurate, erroneous or otherwise misleading information in an endorsement post in a manner which visibly apprises the reader that the post has been altered to correct prior misstatements.

Collaborator will not post or forward written statements, audio, video, pictures or other materials that could be considered offensive, malicious, obscene, harassing or threatening to any readers or viewers, including, but not limited to, Function employees, customers, clients, subscribers or followers.

Collaborator must direct any questions regarding Function’s endorsement protocol to Function’s Social Media Endorsement Coordinator.

Monitoring Compliance

Function has the right to monitor Collaborator’s endorsement efforts to evaluate compliance with this policy.

Failure to Comply

Should Function identify any Collaborator posts which violate this policy, Function may provide written notice to Collaborator and require one or more of the following: immediate removal of the post from all social media platforms; a post or statement to Collaborator’s followers which corrects the identified violation; suspension of all promotional endorsements; training and/or re-training on compliance with this policy and the FTC Endorsement Guides; and/or termination of Collaborator’s relationship with Function.