Legal Do’s And Don’ts For Using Customer Testimonials In NZ Marketing

Customer testimonials can be one of the fastest ways to build trust in your brand.

But if you’re using them in ads, on your website, in emails, or across social media, there’s a legal layer you don’t want to overlook. A single “too-good-to-be-true” quote, a testimonial you don’t have proper permission to use, or a claim that can’t be backed up can turn a great marketing asset into a real compliance headache.

This guide breaks down the practical do’s and don’ts around customer testimonials legal compliance for New Zealand small businesses, so you can promote your business with confidence (and stay on the right side of consumer and privacy law).

Why Testimonials Are Powerful (And Why The Legal Side Matters)

Testimonials work because they feel real. They help potential customers picture what it’s like to buy from you, and they reduce perceived risk - especially if you’re a newer business or you sell higher-value products or services.

From a legal perspective, though, a testimonial isn’t “just a comment”. Once you use it in marketing, it can become part of your advertising and sales messaging.

That matters because in NZ:

• Ads must not be misleading or deceptive.
• You should get clear consent before using someone’s testimonial, name, likeness or other identifying details in your marketing (and you should be careful with how you edit their words).
• If you’re collecting, storing, and publishing information about identifiable customers, privacy obligations can apply.

In other words, good testimonials are about trust - and the legal rules are designed to protect that same trust.

What NZ Laws Apply To Customer Testimonials?

When people look up whether customer testimonials are legal, they’re usually worried about one of three things: (1) “Can I post this?”, (2) “What if it’s not accurate anymore?”, and (3) “What if a competitor complains?”

In NZ, the key legal areas to be aware of are:

Fair Trading Act 1986 (Misleading Or Deceptive Conduct)

The Fair Trading Act 1986 is the big one for testimonials. It broadly prohibits misleading or deceptive conduct in trade, as well as false or misleading representations.

Practical examples of problems under the Fair Trading Act can include:

• Using a testimonial that implies results your typical customer won’t get (without clarifying that the result is unusual).
• Publishing testimonials that you know are not genuine (or you can’t substantiate).
• Cherry-picking a quote in a way that changes its meaning (for example, removing the part where the customer mentions a limitation).
• Using a “review” that is actually written by you, your staff, friends, or family but presented as a real customer’s independent opinion.

Even if you didn’t intend to mislead anyone, what matters is the overall impression your marketing creates.

Consumer Guarantees Act 1993 (Be Careful With Implied Promises)

The Consumer Guarantees Act 1993 automatically gives consumers certain guarantees when they buy goods or services (in many situations). While testimonials aren’t “the law” in themselves, your marketing can create expectations that customers will rely on.

If a testimonial reads like a promise (for example, “This will definitely fix your problem in 24 hours”), it may increase the risk of a dispute if a customer buys based on that expectation and doesn’t get the same outcome.

Privacy Act 2020 (Publishing Identifiable Customer Info)

If your testimonial includes information that identifies the customer (their name, photo, business name, location, or even a combination of details that makes them reasonably identifiable), the Privacy Act 2020 may be relevant.

This is especially important if you’re publishing:

• Before-and-after photos
• Video testimonials
• Testimonials that mention health information, financial details, or other sensitive context
• Case studies that go beyond a short quote

Having a clear Privacy Policy and a consistent consent process is often a smart “from day one” step if you rely on social proof to market your business.

Copyright And Ownership (Who Owns The Words?)

This one surprises business owners: sometimes the person who wrote the testimonial may hold copyright in what they wrote (depending on factors like how original it is and the form it’s recorded in). Short phrases often won’t be an issue, but longer written testimonials, customer photos, or customer videos can raise ownership questions.

The simplest way to manage this is to have clear written permission (more on that below) that covers your right to reproduce the testimonial for marketing.

Defamation And Reputation Risk

Most testimonial issues are about consumer law and privacy, but there’s also a reputational/legal risk if your testimonial:

• Names a competitor in a negative way (for example, “They were terrible, but you were great”).
• Includes unverified allegations.

Even if the customer wrote it, you’re choosing to publish it, so you should be careful about sharing content that attacks someone else.

Getting Permission: Consent, Privacy, And Image Rights

If you’re only going to take one thing from this article, make it this: get clear permission before you publish a testimonial - and make sure that permission covers the way you’ll actually use it.

A quick “Thanks! Can we post this?” message is better than nothing, but it can still leave gaps if you later want to use the testimonial in paid ads, print marketing, or on a different platform.

What Should You Get Consent For?

Ideally, your consent should cover:

• Where you can use it (website, social media, email, paid ads, printed materials).
• How long you can use it (a fixed period, or ongoing until they withdraw consent).
• How it will appear (full name, first name only, initials, business name, anonymous).
• Whether you can edit it (and what kind of edits are allowed).
• Whether you can use images/video that identify them.

If you’re using customer photos or videos, or any content featuring identifiable people, it’s often worth using a proper Model Release Form (or a tailored consent document) so you’re not guessing what you’re allowed to do later.

If your marketing involves photo or video testimonials, a Photography And Video Consent Form can also help capture the right permissions in a clean, professional way.

Be Extra Careful With Sensitive Information

Testimonials sometimes contain more personal information than you realise. For example:

• A beauty or wellness testimonial might mention a skin condition.
• A financial services testimonial might mention debt or income.
• A home services testimonial might reveal the customer’s address or routine.

Even if the customer volunteered the information, you should think carefully about whether it’s appropriate to publish it publicly, and whether you have explicit consent to share that level of detail.

If you want to use detailed “case study” style testimonials, it’s usually worth getting legal help to shape the wording and consent properly, because the risks (and the marketing value) are higher.

Keeping Testimonials Honest: What You Can (And Can’t) Say

This is where most customer testimonials legal issues come up in practice. The key question is: what impression does your testimonial create for the average customer?

Here are the core do’s and don’ts.

Do Use Genuine Testimonials (And Be Able To Back Them Up)

As a general rule, if you can’t prove it’s real, don’t publish it.

Good record-keeping can include:

• A screenshot of the original review
• The customer’s email/message giving consent
• Order/invoice records showing they actually purchased (where appropriate)

This is particularly important if your testimonials include specific performance claims, savings, outcomes, or timeframes.

Don’t Edit In A Way That Changes Meaning

It’s normal to shorten testimonials for readability. But editing becomes risky when it changes what the customer actually meant.

Safer edits usually include:

• Fixing spelling/grammar (without changing tone or meaning)
• Shortening for length using ellipses (…)
• Removing irrelevant personal details (with care)

Riskier edits include:

• Combining different customers’ comments into one “testimonial”
• Turning a mixed review into a purely positive one by removing all caveats
• Adding words the customer didn’t say (even if you think it’s “what they meant”)

If you do need to edit heavily, the safest approach is to send the final version back to the customer and ask them to approve the wording before you publish.

Do Be Careful With “Results” Claims

Many testimonials include big results (weight loss, revenue growth, pain reduction, “tripled my leads”, “saved me thousands”). These are high-converting, but they can create legal risk if they imply that similar results are typical or guaranteed.

Practical ways to reduce risk include:

• Adding a clear qualifier (for example, “Results vary depending on your circumstances”).
• Avoiding absolutes like “guaranteed”, “always”, “every time”.
• Ensuring you can substantiate any claim that looks like a factual promise (not just an opinion).

If you use a disclaimer, make sure it’s actually visible where the testimonial appears (not buried). A general approach to disclaimers can help, but it should be tailored to your business and the claims you’re making.

Don’t Use “Anonymous” Testimonials In A Way That Looks Fake

Sometimes you need to protect a customer’s privacy (which is totally reasonable). But anonymous testimonials can look suspicious if they’re too polished or too vague.

If you can’t name the customer, consider other trust signals, like:

• Using first name + suburb (with consent)
• Using first name + industry (for service businesses)
• Using a verified purchase badge or internal records (where appropriate)

The goal is to avoid the impression that testimonials are made up.

Where You Use Testimonials Matters: Website, Social Media, Ads, And Influencers

Different marketing channels create different risks - mostly because the format changes how people interpret the testimonial.

On Your Website

Your website is usually your “source of truth”, so testimonials here can carry more weight. If you feature testimonials prominently on landing pages, also consider having solid Website Terms And Conditions in place, especially if you sell online or accept bookings through your site.

Website testimonial tips:

• Keep the testimonial close to the product/service it relates to (so it’s not misleading).
• Date it (older testimonials can become inaccurate if your offering has changed).
• If the testimonial relates to a specific package or promotion, make that context clear.

On Social Media (Including Reposting Reviews)

Reposting a customer’s story post or tagging them can be great for engagement - but don’t assume that because something is public, you can freely use it in your business marketing forever.

Best practice is still to:

• Ask permission to repost.
• Confirm whether they’re okay with you using it in paid ads (this is a big difference).
• Avoid reposting anything that includes personal/sensitive info, even if they posted it first.

In Paid Advertising

Paid ads often get the most scrutiny because they’re clearly “advertising”. If you’re running ads that include testimonials, be especially careful with:

• Bold performance claims
• Before-and-after imagery
• Health, beauty, financial, or “life improvement” claims

If the testimonial could create an expectation that your product/service will produce a particular outcome, make sure you’ve considered how you’ll substantiate that impression.

In Email Marketing

If you’re using testimonials in email campaigns, you’ll often be processing customer data in the background (email lists, tracking, segmentation). This is a good time to double-check your privacy compliance and unsubscribe processes.

Also, if you’re quoting someone directly in a marketing email, make sure your consent covers email use - not just “posting on Instagram”.

Influencer-Style Testimonials And Paid Partnerships

There’s a big difference between:

• A genuine customer leaving an independent review, and
• Someone being given a discount/free product/payment to post about you.

Once there’s an incentive, it’s closer to an endorsement or paid promotion, and you should treat it as advertising content (with clear terms and expectations).

In New Zealand, the Advertising Standards Authority (ASA) rules and platform policies generally expect paid or incentivised endorsements to be clearly identifiable as ads (for example, with labels like “#ad” or “paid partnership”), so people aren’t misled about why the post is positive.

If you work with creators or ambassadors, having an Influencer Agreement can help set rules around what they can say, disclosure expectations, ownership of content, and what happens if a post causes a complaint.

Key Takeaways

• Testimonials are marketing, so your advertising obligations apply - especially under the Fair Trading Act 1986.
• Only use genuine testimonials you can verify, and keep records of the original review and the customer’s consent.
• Get clear permission before publishing a testimonial, and make sure it covers the channels you’ll use (website, social media, paid ads, email, print).
• Be careful editing testimonials - it’s fine to shorten or tidy them, but not to change their meaning or remove important context.
• Watch out for “results” claims; if a testimonial implies typical or guaranteed outcomes, you may need qualifiers or stronger substantiation.
• Privacy matters when testimonials identify customers, especially in photo/video content or where sensitive information is involved.

This article is general information only and isn’t legal advice. If you’d like help setting up a clean consent process, reviewing your marketing claims, or putting the right legal documents in place for testimonials and endorsements, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.