It was a few weeks ago when the Federal Trade Commission released its updated guidelines on endorsements and testimonials used in advertising. Word of mouth marketers are focusing on the impact these revised guidelines will have on social media marketing activities.

(There’s a half-day session on this topic at a upcoming word of mouth marketing conference you may have heard about.)

Over the next month we’ll be sharing perspectives from WOMMA members on how their companies are incorporating and interpreting the new FTC guidelines.

The issue in all of this for word of mouth marketers comes down simply to disclosure. If a brand/agency designs a program where a blogger receives in-kind gifts (free camera), special access privileges (trip to visit company’s HQ), and cash (moola, dinero, benjamins) as part of a marketing program designed to spark word-of-mouth, that material connection must be fully disclosed by the blogger.

This act of disclosure protects both consumers and marketers because it assures consumers that product testimonials are truthful and trustworthy, and it offers marketers a viable way to reach consumers with credible information.

Rod Brooks, chief marketing officer with PEMCO Insurance, is pleased to see the FTC stepping up to provide guidance:

“In marketing there are shades of gray … but in terms of these new FTC regulations, it’s back and white. PEMCO strives for transparency in all of our business practices and across all mediums. We’re pleased these new industry guidelines support our longstanding belief that there’s no right way to do the wrong thing.”

MeHype is deep into the user-generated marketing waters. The company links brands with amateur and professional video filmmakers who produce online marketing videos in support of a product or service. Tyler LeCompte is the director of operations at MeHype and he is also pleased with the recent FTC happenings:

“[Clients] have expressed that they are happy to have some documented guidance from a leading source such as the FTC about required disclosure for any ‘sponsored’ blogging/review programs that they have either been participating in or have been considering. Going forward, we will be including a specific disclosure agreement contract that adheres to the FTC guidelines as well as the updated WOMMA Ethics Code.”

More perspectives from WOMMA members to come in future posts…