Series 7 practice questioneasySocial Media and Digital Communications — Testimonials
According to FINRA, which statement about using customer testimonials in social media promotions is TRUE?
- ATestimonials do not require any disclosures
- BTestimonials may be used but must disclose if compensation was provided✓ Correct answer
- CTestimonials can only be used on radio or TV
- DTestimonials are never permitted on social media
Explanation
Why B — Testimonials may be used but must disclose if compensation was provided
FINRA allows testimonials on social media if the firm discloses whether compensation was paid for the testimonial.
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