FTC control...
U.S. federal guidelines concerning the disclosure of endorsements or incentives will set a new standard for online advertisers. The revised guidelines are intended to address hidden endorsements and incentives in a variety of new media, including blogs and word of mouth media. The rules are broad enough to affect activity on forums, Twitter and social networks.
(The various statements of fact made in this article concerning the guidelines come from the text of the FTC Guidelines: see, “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” 16 C.F.R. Part 255. A hyperlink to a download of the full text of the rules can be found at the end of this article.)
The guidelines, promulgated by the United States’ Federal Trade Commission, go into effect on December 1, 2009 and and are intended to regulate endorsements by consumers, experts, organizations, and celebrities, as well as requiring the disclosure of “material connections” between advertisers and endorsers.
The term “endorsement” is defined as:
…any advertising message … that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser, even if the views expressed by that party are identical to those of the sponsoring advertiser.
The definition is clearly broad enough to cover social media, blogging and posts made on review sites or forums.
The standard applied to social media is stated in this passage:
The Commission does not believe that all uses of new consumer-generated media to discuss product attributes or consumer experiences should be deemed “endorsements” within the meaning of the Guides. Rather, in analyzing statements made via these new media, the fundamental question is whether, viewed objectively, the relationship between the advertiser and the speaker is such that the speaker’s statement can be considered “sponsored” by the advertiser and therefore an “advertising message.” In other words, in disseminating positive statements about a product or service, is the speaker: (1) acting solely independently, in which case there is no endorsement, or (2) acting on behalf of the advertiser or its agent, such that the speaker’s statement is an “endorsement” that is part of an overall marketing campaign? The facts and circumstances that will determine the answer to this question are extremely varied and cannot be fully enumerated here, but would include: whether the speaker is compensated by the advertiser or its agent; whether the product or service in question was provided for free by the advertiser; the terms of any agreement; the length of the relationship; the previous receipt of products or services from the same or similar advertisers, or the likelihood of future receipt of such products or services; and the value of the items or services received.
(The various statements of fact made in this article concerning the guidelines come from the text of the FTC Guidelines: see, “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” 16 C.F.R. Part 255. A hyperlink to a download of the full text of the rules can be found at the end of this article.)
The guidelines, promulgated by the United States’ Federal Trade Commission, go into effect on December 1, 2009 and and are intended to regulate endorsements by consumers, experts, organizations, and celebrities, as well as requiring the disclosure of “material connections” between advertisers and endorsers.
The term “endorsement” is defined as:
…any advertising message … that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser, even if the views expressed by that party are identical to those of the sponsoring advertiser.
The definition is clearly broad enough to cover social media, blogging and posts made on review sites or forums.
The standard applied to social media is stated in this passage:
The Commission does not believe that all uses of new consumer-generated media to discuss product attributes or consumer experiences should be deemed “endorsements” within the meaning of the Guides. Rather, in analyzing statements made via these new media, the fundamental question is whether, viewed objectively, the relationship between the advertiser and the speaker is such that the speaker’s statement can be considered “sponsored” by the advertiser and therefore an “advertising message.” In other words, in disseminating positive statements about a product or service, is the speaker: (1) acting solely independently, in which case there is no endorsement, or (2) acting on behalf of the advertiser or its agent, such that the speaker’s statement is an “endorsement” that is part of an overall marketing campaign? The facts and circumstances that will determine the answer to this question are extremely varied and cannot be fully enumerated here, but would include: whether the speaker is compensated by the advertiser or its agent; whether the product or service in question was provided for free by the advertiser; the terms of any agreement; the length of the relationship; the previous receipt of products or services from the same or similar advertisers, or the likelihood of future receipt of such products or services; and the value of the items or services received.
Right from the pages of Socialists and Dictators. Hope you like who you voted into office.
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