Full disclosure: This blog post is in accordance with company rules, FTC guidelines and the U.S. Constitution. P.S.: No animals were harmed in the production of this blog post, either.
I kid … sort of. Today there are more rules and guidelines popping up about transparency for new media than ever before. What used to be considered the Wild West of the Internet era is now becoming more structured.
Many companies have produced policies for both employee and brand engagement with social media tools. CMD developed its social media policy last year, and we continue to update and refine it as technologies change. The goal is to ensure that companies and their employees are providing the public with transparent, truthful and trustworthy communications. The public discussion on how to do so varies widely, but in fact the Federal Trade Commission (FTC) has stepped in to help shape the conversation.
Last fall the FTC published guidelines governing the use of testimonial advertisements, bloggers and endorsements. Since then, marketers have been deciphering the guidelines to ensure they’re playing by the rules of the new game. Check out the Good Morning America segment below showing how retailers like JCPenney and Forever 21 are sponsoring teens’ video content for the back-to-school season this year—in conjunction with the new FTC guidelines, of course.
I’ve put together a few of the top tips we use to advise our clients before engaging in territories where the FTC guidelines may come into play:
- No more freebies. Just like journalists, bloggers can be a great source for unbiased product reviews and promotion. However, bloggers and marketers must disclose the offer upfront. Like the fake disclaimer statement above, bloggers need to provide their readers with the details of their engagement with a marketer. Check out this great example of how one blogger, Kath Eats Real Food, outlines her FTC compliance.
- Don’t assume endorsers and bloggers are aware of the new guidelines. The responsibility for following the FTC guidelines is in the hands of both the marketer and paid endorser or blogger. As the marketer, it’s your role to make sure a blogger or endorser understands the rules and agrees to comply with them. Do not continue a relationship with someone who will not agree to the rules, as you will still be held liable.
- Have your statement prepared. Help a blogger or an endorser understand what they need to disclose by providing them with a simple statement outlining the agreements of your arrangement. Keep it simple and straightforward.
What do you think about these guidelines? Which do you feel are necessary? Which are the ones you could live without?
Tags: cmd agency, communications, community, conversation starter, FTC regulations, journalists, networking, rules, social corporate responsibility
I apologize in advance that my response is so long, but I have so many mixed feelings about this topic. On the one hand, transparency is a good value to aim for. The more honest we are, and the more honest our employers or clients are, the less chance something will later bite us in the behind. Should bloggers be upfront with their followers about how they select items they review? Absolutely. (I think you gave us a GREAT example of this with the “Kath Eats Real Food” link.)
Should that transparency be enforced by a government agency? Ehhh… I don’t think so.
FULL DISCLOSURE: I think that in regards to marketing, the FTC should mostly keep to regulating straight-up scams and blatant false advertising. Even aside from those views though, I think that trying to regulate social media is tricky. Because for most people, social media is inherently social, you are talking about regulating the communication between a person and their friends. (After all, couldn’t any one of those girls in the video argue that they simply have 6,000,000 friends who watch their videos? Will the FTC regulate what a “friend” really is?)
While I’ve been writing this response I wrote this on Twitter: “I wish @SharisPies offered Pecan Pie year round. It’s my favorite, and I want some right now. #nomnom” Now, please don’t tell the FTC this, but Shari’s gave me a gift certificate for a free slice of pie yesterday. And I didn’t say anything about it in my tweet (keep in mind that Twitter is microblogging.) Am I at fault for this? Why or why not?
I find it rather puzzling that after decades of product placement-laden media (which I have NO problem with, since it subsidizes so much of the cost of the media I consume) the FTC is regulating bloggers.
Forgive me if this has turned into a rant, Stefanie. This was an excellent post, and I really do think you gave some excellent tips for marketers and bloggers on staying on the right side of the law. Thanks for the great read.
P.S. I noticed in the video that ABC News didn’t mention any connection to Lion King or Aeropostole, but do you think it’s just coincidence that their ads are in the background of the shot? (That’s an honest question, I really don’t know.)
My cousin recommended this blog and she was totally right keep up the fantastic work!