Business consulting and coaching: the numbers, the rules, the AI picture.

• FTC Endorsement Guides and the Consumer Reviews and Testimonials Rule

  The FTC's Endorsement Guides, revised in 2023, say an endorsement must reflect the honest opinion of the endorser, a material connection such as payment or free services must be disclosed clearly and conspicuously, and an advertiser stays responsible when an agency or influencer promotes for it. If an endorser reports unusual results, the ad must show they are typical or state the generally expected results. The FTC's separate rule on consumer reviews and testimonials took effect on October 21, 2024 and bans fake reviews, buying reviews, undisclosed insider reviews and review suppression, with civil penalties for knowing violations.

  What it means: Quote only real clients, with their consent, and say when a quote came from someone you paid, discounted or employ. Do not write your own reviews, trade reviews for discounts that require praise or threaten reviewers. The FTC's own Q&A says the rule's terms for consumer and celebrity testimonials do not include endorsements by businesses, with one exception about false claims of independent reviews, so the review rule may reach less of B2B marketing than the Guides. Do not rely on that gap. Treat the honesty and typical-results principles as binding.

  [8] ftc.gov

• FTC rules on earnings and income claims (Notice of Penalty Offenses, October 2021)

  On October 26, 2021 the FTC sent Notices of Penalty Offenses to more than 1,100 businesses that pitch money-making opportunities, naming investment and business coaching providers among them. The notice covers false or unsubstantiated claims about the profits a participant may expect, claims that results are typical when they are not, false claims that no experience is needed, false urgency, and testimonials that mislead about rewards. The 2021 release stated a maximum of $43,792 per violation. The FTC says receiving a notice is not a finding of wrongdoing, but it puts the recipient on notice for later conduct.

  What it means: If you coach others on how to earn money or build a practice, every income figure needs substantiation you can produce, and a clear statement of what most clients achieve. Never use 'six figures in 90 days' language, countdown pressure or testimonial results that are not typical. In September 2023 the FTC settled with the business coaching seller Lurn, whose programs advertised claims such as 'Stay-At-Home Millionaire' which the FTC alleged it could not back up, with $2.5 million turned over for refunds and a $14,077,121 judgment partly suspended.

  [4] ftc.gov

• FTC Business Opportunity Rule (16 CFR Part 437)

  The FTC describes a business opportunity as an arrangement where a seller solicits a buyer to start a new business, the buyer makes a required payment, and the seller makes certain claims, for example about earnings or help finding customers. The rule requires a one-page disclosure document at least seven days before the buyer signs or pays, and a separate Earnings Claim Statement if the seller makes an earnings claim. Sellers must hold written substantiation and keep records, such as signed receipts and contracts, for three years. Franchises are generally exempt.

  What it means: This rule is aimed at programs that sell people a new business, not at consultants who help existing companies. It becomes relevant if you sell a course or mentoring program that teaches others to start a consulting or coaching practice and you promise income, customers or a buy-back. If you do, take legal advice before you launch, because the disclosure timing and the earnings statement are strict. Whether your offer is in scope is a legal question, not a marketing one.

  [5] ftc.gov

• CAN-SPAM Act (United States email marketing)

  The FTC lists eight requirements for commercial email: accurate header information, non-deceptive subject lines, a clear disclosure that the message is an advertisement, a valid physical postal address, a clear way to opt out, honouring opt-outs within 10 business days with the mechanism working for at least 30 days, and responsibility for any third party that sends on your behalf. The FTC states that the law makes no exception for business-to-business email. Each separate violating email can carry penalties of up to $53,088, an amount the FTC updated in January 2024.

  What it means: Your newsletter, lead-magnet follow-ups and cold outreach all count. Put your postal address and a working unsubscribe link in every message, remove people promptly, and make sure any outreach platform or agency you hire does the same. Do not buy lists without checking how the contacts were collected, because consent rules in the UK, EU and Canada are stricter than the US baseline.

  [7] ftc.gov

• ICF Code of Ethics (executive, leadership and business coaches)

  The International Coaching Federation's Code of Ethics (revised June 25, 2021) requires ICF Professionals to identify accurately their coaching qualifications, level of competency, expertise, experience, training, certifications and ICF Credentials (standard 20). Verbal and written statements about what they offer and the potential value of coaching must be true and accurate (standard 21). Coaches must maintain the strictest levels of confidentiality with all parties as agreed (standard 3) and agree the limits of confidentiality in advance (standard 5).

  What it means: State your credentials exactly as held: ICF membership is not a credential, and a training certificate is not an ICF credential level. Do not promise outcomes that depend on the client. Get written consent before you name a client, quote them or describe their situation, including when a sponsor paid for the coaching. The code applies to members of the ICF, so check which body, if any, binds you.

  [9] coachingfederation.org

• ICMCI Code of Professional Conduct and the CMC designation (management consultants)

  The International Council of Management Consulting Institutes publishes a professional code for Certified Management Consultants worldwide. It includes a duty to treat client information as confidential and to respect the confidentiality of information from any source, and a duty to be open and honest about qualifications, skills and experience and to accept only work they are competent to perform. National institutes such as IMC USA, which certifies the CMC designation in the United States, apply the code to their members.

  What it means: Use the CMC mark only if you hold it. Do not publish a client's name, problem or results because you were proud of the outcome: the duty covers information the client has not made public. Our research found IMC USA's code only in third-party reproductions, so read the current text on the institute's own site before you quote it.

  [10] cmc-global.org

• United Kingdom and EU: PECR and the GDPR

  The UK Information Commissioner's Office says organisations normally need consent before sending unsolicited electronic mail marketing to individual subscribers, and that you can email corporate subscribers without consent or a soft opt-in. Individual subscribers include sole traders and ordinary partnerships. In every case you must not hide your identity and must give a valid, free way to opt out. Under GDPR Article 6, processing personal data needs a lawful basis, such as consent or legitimate interests, and legitimate interests does not apply where the person's rights and interests override it.

  What it means: Many UK consultants and coaches sell to sole traders and small partnerships, so the corporate exception covers fewer of your prospects than you expect. Use a double opt-in for newsletters and lead magnets, record when and how people consented, and keep a privacy notice that says what you do with their data. Named addresses at a company are still personal data. Confirm your lawful basis with a data protection adviser.

  [11] ico.org.uk

• Canada: Anti-Spam Legislation (CASL) and its business-to-business exemption

  CASL requires consent, identification of the sender and a working unsubscribe for commercial electronic messages. A narrow exemption exists for messages between organisations that have a relationship, where the message concerns the recipient organisation's activities. In 3510395 Canada Inc. v Attorney General of Canada (2020 FCA 103), the Federal Court of Appeal held that the relationship must be with the recipient organisation, not just a few employees, and that a few transactions with a few employees are not enough to cover everyone there.

  What it means: Do not assume Canadian business contacts are exempt because the email is professional. Collect express consent for newsletters, keep proof of it, and treat a cold email to a Canadian executive as a legal question. Our source is a law firm summary of the court decision, so confirm current rules and penalties with the CRTC and counsel.

  [12] torys.com

This is general information, not legal advice. Rules differ by country, state and professional body, and they change. Confirm testimonials, income claims, email practices and credential wording with your own lawyer and with the body that certifies you before you publish.