Oct/095
FTC to Regulate Social Media Marketing
The Federal Trade Commission is putting limitations on advertising on social media sites in an attempt to make sure that paid endorsements are fair and transparent. On Monday, the FTC updated its guidelines to specify that bloggers are required to publicly disclose “any material connections” they might have to a brand or product they discuss, even those posted on Twitter and Facebook. While these guidelines are not law, the FTC can bring advertisers and bloggers into court for violating them.
To define what constitutes an "endorsement," the FTC examines factors such as:
- Whether compensation or a free product/service was provided by an advertiser
- Previous or future acceptance of products/services from the same or similar advertisers
- The terms and length of the relationship
- The value of products/services received
The FTC says that “a consumer who purchases a product with his or her own money and praises it on a personal blog or on an electronic message board will not be deemed to be providing an endorsement.” This means that independent consumers are still allowed to review their brands.
It’s important for all of our publishers to know about the FTC’s new guidelines. To make sure you stay safe and informed, read the full FTC announcement here.
October 27th, 2009
Hmm… I read blogs on a similar topic, but i never visited your blog. I added it to favorites and i’ll be your constant reader.
October 31st, 2009
Social Media Marketing is really the trend these days. i market most of my products through social networking sites..
November 16th, 2009
i do Social Media Marketing specially when promoting a new website or an affiliate product. Social media is more effective than offline advertising in my opinion.
July 26th, 2010
Informative story, saved your site in hopes to read more information!
July 26th, 2010
Helpful blog, saved your website with interest to read more!