FTC Cracks Down On Bloggers and Testimonial Writers
Copyright © Margie Franklin
Are you a Blogger, Testimonial Writer, Celebrity Endorser, or Advertiser? If so, the FTC could be targeting you.
We recently were made aware that the Federal Trade Commission (FTC) revised Guides are more strict and could have a negative impact on people who endorse products or services in exchange for a monetary reward or other type of incentive.
The FTC is a watch dog for people who are considering purchasing or have purchased products or services. It’s their job to keep unscrupulous people from making false promises about items or services they are selling, promoting or endorsing in ads, blogs, commercials, or testimonials.
Effective December 1st, any gifts or money received in exchange for writing testimonials or endorsing products, must be properly disclosed. Also, when making endorsements, you must reveal your connection, if any, to the seller of that product or service.
Caroline McCarthy, author of the Blog called “the social,” gave a great example of one of the ways an unsuspecting celebrity or high profile person could unwittingly violate the revised FTC’s Guides by using Facebook’s Fan Page. Her article is titled “Yes, new FTC guidelines extend to Facebook fan pages.”
Following is an excerpt of Caroline McCarthy’s article, dated October 5, 2009:
“Prominent users of Twitter and Facebook won’t be exempt from controversial new Federal Trade Commission guidelines that keep tabs on blogger freebies and giveaways, according to Richard Cleland, associate director for the FTC’s advertising division. The agency absolutely plans to keep tabs on social networks as well as blogs in accordance with revised regulations that could see violators fined up to $11,000, he said.
Here’s a sample scenario: a celebrity or other prominent figure with loads of friends on Facebook receives free hotel says from Hotel Chain X in exchange for running Hotel Chain X ads on his or her blog. If that person then signs up as a Facebook fan of Hotel Chain X–which, remember, could mean that the person’s name can show up for his or her Facebook friends alongside Hotel Chain X display ads on the social network–he or she could be held liable by the FTC.”
Caroline McCarthy’s article may help bloggers get a better understanding of the Federal Trade Commission’s revised Guidelines. I recommend interested parties take a few moments to read it in it’s entirety.
The FTC’s revised Guides also go as far as to indicate that they will no longer tolerate or allow the well used phrase “results not typical.” This phrase was seen quite frequently, in small print, at the bottom of a Sales Page.
The same applies to companies who use the results from research to prove that their products work. If that particular company has a relationship with the research organization, that info must also be disclosed to the public.
You may read the actual revised Guides issued by The Federal Trade Commission at their website. http://www.ftc.gov/opa/2009/10/endortest.shtm.
Want more information? Joel Comm, author of “Twitter Power,” and Atty Kevin Houchin are conducting a webinar on Monday, November 9th to review how these changes will impact your business.
Joel and Kevin will also provide advice on the necessary steps to take in order to be compliant with the new guidelines. Obtain the link from “Friends of Joel Comm” on Facebook.
Don’t be the one to get slapped with a fine! Take the time to educate yourself on FTC’s revised guidelines, as well as preventative measures that will help keep your hard earned dollars in your pocket.
Oh, and by the way, I’m not associated with Caroline McCarthy, Joel Comm, nor Atty. Kevin Houchin. No compensation or freebies are being received for mentioning them in my article. (I have read “Twitter Power” by Joel Comm, which I also recommend.)
Margie Franklin is the owner and webmaster of Live The Dream With Faith Home Business Opportunities. She also is a firm believer in giving back to the community. You too can join her efforts to help fund non-profit organizations and change the world by shopping online.
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