Posts Tagged ‘bloggers’

ERA’s Tomi Turner on the FTC’s Revised Guides

Tuesday, October 6th, 2009

picture-150x150Yesterday, the Federal Trade Commission released its revised Guides Concerning the Use of Endorsements and Testimonials in Advertising. The Guides are more than 80 pages long, so we’re still analyzing the changes. However, there is no question that our extensive advocacy efforts have had an effect on the final iteration of the Guides. The commentary included with the changes explains that advertisements using consumer testimonials should be evaluated by the net impression of the advertisement. A footnote in the revised Guides also suggests that in some cases a disclaimer could be sufficient. A more comprehensive legal document will be circulated shortly, but it is clear from a preliminary review that our efforts have not been made in vain. The 35 advocacy meetings on the Hill, 40 constituent meetings at the Fly-In, the testimony before the Senate, two sets of detailed comments and our suggested language were all helpful in presenting our case to the FTC.

However, the new Guides certainly do present some challenges, both to traditional TV marketers and those in social media. ERA is already planning educational opportunities that will provide suggestions for compliance with these changes. We hope the FTC will seize the opportunity to improve the marketplace by presenting to these changes to ERA members at one of our conferences.

Members who attended the Fly-In, supported the Leadership Reception, participated in the Government Affairs Committee, helped to author and review our comments to the FTC, and of course, testified before the Senate, were all instrumental in mitigating some of the more harmful changes. We thank you.

Tomi Turner is ERA’s legislative manager.

To read ERA’s official statement, click here.

To read more about ERA’s government affairs efforts and what you can do to help, click here.

To read Electronic Retailer magazine’s June cover story on Endorsements & Testimonials, click here.

Blogola: Are Product Reviews in Danger?

Thursday, June 25th, 2009

picture If you are thinking about buying something online, one of your first steps in evaluating the product might be to see what kind of reviews the product has received. But what if the reviewer was paid to give a favorable review? This is a practice that clearly has some troubling implications. That’s why the FTC recently addressed this practice in the Guides Concerning the Use of Endorsements and Testimonials in Advertising (yes, this is the same proposal that would require evidence of typicality for some testimonials).

But, consider this: You want your product to appear on reviews because you believe it will help increase the visibility of the product or brand. You send a free sample to a well-known blogger and you explicitly tell them they should be neutral in their review and should disclose that they received the product for free. Under the FTC’s proposed changes you may have liability. If on the same day you also send your product to a product reviewer for a publication without any agreement requiring disclosure, and they do not disclose that they received the product for free, you do not have liability!

Product reviews online come in many forms. In some contexts consumers will expect that the product was given to the reviewer as a free sample. If a college student reviews a new game console every week, would anyone really think that he or she is spending thousands of dollars a month to share friendly advice? This is a complicated issue deserving careful analysis; the FTC must consider the nuances of product reviews before adding new regulations for bloggers.

Get involved! You can learn more and do something about these proposed changes here.

For more information on ERA’s government affairs efforts, click here.

Tomi Turner is ERA’s legislative manager.