Be Careful of What You Say - And More Careful of What You Don't
There has been a fair amount of press on the intention of the FTC to penalize bloggers for not disclosing renumeration (money, free product, etc.,) that they receive when the write posts endorsing products. When you think about it, disclosure makes sense. Do we really want to have friends tell us things that are in reality just a commercial. The $11,000 potential fine, on the other hand, may be a tad on the excessive.
While the disclosure requirements on blogs has caught the media's attention, the new FTC rules actually go much further. If you advertise, you probably will want to make sure you aren't walking into a hornet's nest.
Everyone has seen the ads for the guy who went from a 250 lb. marshmallow to a ripped Men's Fitness model in a couple of months. (Much as most of us would like - it usually does not happen that way). If you look carefully, the advertisement will almost always have a disclaimer "results not typical." One of the big changes is that the safe harbor disclaimer will no longer be allowed. Now you will have to identify what typical results are. So if the your spokesperson is a freak of nature who lost 50 times your customers' average of 2 lbs, you are going to have to disclose that typical results are two pounds.
The disclosure requirement is also going to extend to peer to peer advertising. If you are are giving award points to a million teenagers who proselyte their friends for you, be aware that those "spontaneous" endorsements have to be disclosed as advertising. Yes, it kind of ruins the effect of peer to peer advertising when people realize that you are paying people to be their friends. However, failure to do so may bring down the ire of the FTC. "Hey Johny, that new video game I bought rocks - This has been a paid commercial for Jimbo's new video game."
Another interesting change in the rules is that the endorser may now also be liable for violations of the rules. Thus, if you make your living endorsing people's products, what you do not say may be just as important as what you do.
What to do - read the rules and make sure that your latest ad campaign won't get you a visit from the FTC.
Here is the FTC Announcement
Here is the Revised Endorsement Guide
While the disclosure requirements on blogs has caught the media's attention, the new FTC rules actually go much further. If you advertise, you probably will want to make sure you aren't walking into a hornet's nest.
Everyone has seen the ads for the guy who went from a 250 lb. marshmallow to a ripped Men's Fitness model in a couple of months. (Much as most of us would like - it usually does not happen that way). If you look carefully, the advertisement will almost always have a disclaimer "results not typical." One of the big changes is that the safe harbor disclaimer will no longer be allowed. Now you will have to identify what typical results are. So if the your spokesperson is a freak of nature who lost 50 times your customers' average of 2 lbs, you are going to have to disclose that typical results are two pounds.
The disclosure requirement is also going to extend to peer to peer advertising. If you are are giving award points to a million teenagers who proselyte their friends for you, be aware that those "spontaneous" endorsements have to be disclosed as advertising. Yes, it kind of ruins the effect of peer to peer advertising when people realize that you are paying people to be their friends. However, failure to do so may bring down the ire of the FTC. "Hey Johny, that new video game I bought rocks - This has been a paid commercial for Jimbo's new video game."
Another interesting change in the rules is that the endorser may now also be liable for violations of the rules. Thus, if you make your living endorsing people's products, what you do not say may be just as important as what you do.
What to do - read the rules and make sure that your latest ad campaign won't get you a visit from the FTC.
Here is the FTC Announcement
Here is the Revised Endorsement Guide
Nice post.....
I was searching for the same from past two weeks and now got it here.
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Great post, to be honest i read about it a lot and it still very interesting.
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