Substantiation

Substantiation

Substantiation

Substantiation requires a firm to have a reasonable, documented basis for a marketing claim when it's made, not assembled later if the claim is challenged.

Substantiation requires a firm to have a reasonable, documented basis for a marketing claim when it's made, not assembled later if the claim is challenged.

Substantiation is the requirement that a firm have a reasonable, documented basis for a marketing claim at the time it is made, not assembled afterward if challenged. Under rules like the SEC Marketing Rule and FTC Act Section 5, unsubstantiated performance, savings, or comparative claims are deceptive even if later proven accurate.