Thursday, February 25, 2010

FTC New Regulations for Online Marketing, Testimonials, Affiliates, disclosures…

http://www.websitemagazine.com/content/blogs/posts/archive/2009/10/15/new-ftc-regulations-apply-to-marketers-affiliates.aspx

http://www.ftc.gov/multimedia/video/business/endorsement-guides.shtm

http://ftc.gov/os/2009/10/091005revisedendorsementguides.pdf

http://www.ftc.gov/multimedia/video/business/red-flags-rule.shtm

The revised Guides provide directions for applying the Guides in the context of social media such as blogging and twittering. The FTC states that the revised Guides apply to blogging and the use of other forms of social media in advertising (e.g., micro-blogging, buzz, viral and word-of-mouth marketing). The revised Guides provide new direction as to how the requirement for disclosure of "material connections" will apply in the social media context. In fact, the FTC's commentary expressly notes that bloggers may be subject to different (and presumably heightened) disclosure requirements than reviewers in traditional media. Further, the revised Guides make no per se distinction between monetary compensation versus in-kind compensation (e.g., product giveaways) paid to the blogger, nor is there a per se distinction between professional versus amateur bloggers. The FTC's commentary emphasizes that advertisers using such forms of social media should establish procedures to advise endorsers to make the necessary disclosures of their material connections to the advertiser, and monitor their endorser's conduct.

http://www.mondaq.in/unitedstates/article.asp?articleid=88798

Using testimonials from customers and others can be a very effective way to promote your business. After all, everybody expects you will say great things about yourself in your advertising. But an unsolicited rave review from a satisfied customer or industry leader? Solid gold. Still, there are rules. Let's take these three items one at a time.

Letters from customers: Customers who are delighted at getting superior service often write thank-you letters, but that doesn't mean they are authorizing you to use those letters in your promotional efforts. Unless the letters state specifically that it's OK to use them in your marketing literature, I would write or e-mail them and ask for specific written permission to reproduce all or parts of the letter on your Web site. If they don't respond to your request for permission, I would view that as denying you the right to post the letters online.

http://www.creators.com/lifestylefeatures/business-and-finance/succeeding-in-your-business/using-testimonials-in-your-marketing-strategy.html

In addition, the DMA is now considering changes to its guidelines for advance consent marketing, in light of a Senate inquiry that raised concerns about how best to obtain adequate and informed consent from consumers for post-transaction/negative option programs online.

http://www.the-dma.org/virtualseminars/advanceconsent/

http://branch.vimeo.com/9002248

http://www.youtube.com/watch?v=DBMlq3R85Xk&feature=related

http://www.adlawbyrequest.com/2009/02/articles/industry/ftc-endorsement-testimonial-guidelines/