Developing story … new FTC Guidelines are Published
WOMMA will continue to be all over the just-announced new guidelines from the FTC on endorsements and testimonials. We’ll be giving members and non-members practical guidance on what the revised guidelines mean and how to ensure marketers can develop/implement word of mouth marketing programs to completely abide by the FTC guidelines.
The press release from the FTC toplines the revisions made to the guidelines. Important snippets marketers must be aware of include:
“… the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.”
“… the revised Guides … clearly state that both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement – or for failure to disclose material connections between the advertiser and endorsers.”
“The revised Guides also make it clear that celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media.”
If you have been following the discussions WOMMA has had and the advice WOMMA has given, the issue of clear disclosure isn’t new. WOMMA addressed the disclosure issue in a recent webinar. (Archived versions here: short version (11-min) ; full-version (60-min).)
The bottom line is when there is a material connection between a blogger and a brand that might affect the credibility of the endorsement, such a connection must be fully disclosed. This protects both consumers and advertisers because it assures consumers that product testimonials are truthful and trustworthy, and it offers marketers and advertisers a viable way to reach consumers with credible information.
Expect more guidance from WOMMA this week and throughout the coming weeks and months about how the revised FTC guidelines will impact your word of mouth and social media marketing programs.
