ARLINGTON, Va.–June 28, 2009 – The Electronic Retailing Association (ERA), the leading trade association for direct-to-consumer commerce, issued the following statements on the death of Billy Mays, one of the pioneers in the direct response television (DRTV) industry:
“DRTV has grown to be a $300 billion business during the last 20 years, and Billy Mays played a key role in making this possible,†said Julie Coons, president and CEO of ERA. “His dedication to DRTV will be remembered by those of us in the industry, as his animated approach to marketing dozen of products, such as Orange Glo and OxiClean, will be remembered by millions of consumers. Our thoughts and prayers go out to his wife, Deborah, and to his family and friends.â€
“This is a sad day for those of us that were lucky to know Billy,” said Nathan Fagre, chairman of ERA and senior vice president and general counsel of 
ShopNBC. “He worked hard, cared about his family and friends and he will be greatly missed.”
Watch as ERA CEO Julie Coons delivers a sneak peak of what attendees can expect from ERA’s upcoming 2009 D2C Convention in Las Vegas September 13-15. Register now!Early bird ends July 1!
Consumers lured by advertisements promising rock-hard abs, sparkling white teeth and bulging bank accounts soon may get a reality check.
Updated guidelines on ad endorsements and testimonials under final review by the Federal Trade Commission—and widely expected to be adopted—would end marketers’ ability to talk up the extreme benefits of products while carrying disclaimers like “results not typical” or “individual results may vary.”
Instead, companies would be allowed to tout extreme results only if they also spelled out typical outcomes.
“For a good part of the last decade, we have noticed a problem, particularly with consumer testimonials,” said Richard Cleland, assistant director of the FTC’s division of advertising practices. “The use of consumer testimonials had become almost a safe harbor for companies as long as they threw in some sort of disclaimer about results not being typical.”
The changes are sending shudders through companies that worry about their ability to motivate consumers to buy their products if they can’t sell the sizzle.
“There would never be another Jared,” said Julie Coons, president and chief executive of the marketing trade group Electronic Retailing Association, referring to Jared Fogle, who became Subway’s spokesman after losing 245 pounds eating the chain’s sandwiches and exercising. “We’re all going to have to regroup” if the proposals stand.
As some of you may be aware, the National Advertising Review Council (NARC) recently announced a board expansion to include representatives from the Electronic Retailing Association (ERA), the Direct Marketing Association (DMA) and the Interactive Advertising Bureau (IAB). These associations now join the flagship members of the NARC Board, namely: the Association of National Advertisers (ANA), the American Association of Advertising Agencies (AAAA), the American Advertising Federation (AAF) and the Council of Better Business Bureaus (CBBB).
The expansion of the board is an unprecedented step in the history of advertising self-regulation and represents the board’s first move in this direction since NARC was founded in 1971. Last year I had the good fortune of being part of a NARC Strategic Planning Committee along with ERA’s Bill McClellan, NARC President Lee Peeler, his predecessor Jim Guthrie, among others, and we were able to persuade the NARC Board of the significance of ERA’s voice in the advertising industry and its importance in being “ahead of the curve†in identifying the pivotal issues facing the industry. The NARC Board sets policies and procedures for advertising industry self-regulation, and ERA’s well deserved addition recognizes the association’s longstanding support of self-regulation and the expertise that they bring to addressing the challenges of self-regulation.
As if I haven’t used my allowed allotment of acronyms already, this may be a great time to reacquaint everyone with where the Electronic Retailing Self-Regulation Program (ERSP) comes from and what we do. In 1971 ANA, AAAA, AAF formed an alliance with the CBBB to create an independent self-regulatory body, NARC. To ensure the credibility and impartiality of the self-regulation system, the advertising review process was set up to operate under the administrative purview of the CBBB. In 2004, the ERA and NARC partnered to form ERSP, and the recent expansion of the board to include Ms. Coons further solidifies this relationship.
ERSP’s mission is to enhance consumer confidence in electronic retailing by providing a quick and effective mechanism for resolving inquiries regarding the truthfulness and accuracy of claims in direct response advertising. ERSP inquiries originate from competitor challenges, consumer complaints and ERSP’s ongoing monitoring program. To date, companies working with ERSP have modified or discontinued nearly two hundred advertisements in an effort to foster more accurate product information to consumers. ERSP is a recognized example of how industry self-regulation can improve industry standards and the consumer experience, a benefit for all parties involved.
By expanding the NARC Board to include ERA, its members are now going to be ensured an advocate within the advertising community at large, and will be part of the discussion on the future of advertising regulation. So with the heartiest of welcomes, we applaud ERA’s appointment to the NARC Board, which means that this organization now literally has a seat at the table and its rightful place amongst the advertising industry at large.
Peter Marinello works for the National Advertising Review Council and spearheads ERSP.
The Electronic Retailing Association (ERA) has named Julie J. Coons as its new president and CEO. Ms. Coons will lead the not-for-profit trade association, which represents the $400 billion direct-to-consumer electronic retailing industry. ERA represents more than 400 companies in more than 40 countries around the world.
“The Electronic Retailing Association plays a pivotal role in the emerging retail landscape,†says Coons. “Emerging technologies present new touch points for retailers to connect directly with consumers. Through its educational offerings, award-winning magazines and other publications and robust government affairs programs, ERA offers a path to profitability in the marketplace of the future for its members, while ensuring that the retailers are operating on an open and level playing field. ERA’s conventions—both in the U.S. and Europe—its government affairs conference, its e-learning offerings and networking events create a community of entrepreneurs on the leading edge of e-commerce with a unique vision of the future of retail.â€
Edwin Garrubbo, immediate past chairman of the board of ERA and president and CEO of Creative Commerce, was head of the search committee for the position. “We are very pleased that ERA will be led by an executive who combines an understanding of the potential of our dynamic and fast-growing industry with a proven track record in association management and growth,†says Garrubbo. “Ms. Coons’ government affairs background and convention experience make her the perfect candidate to head ERA. We are confident that her leadership will significantly strengthen ERA’s ability to be a critical force in advocating for its members and expanding ERA’s excellent slate of benefits to further serve its members’ needs.â€
Prior to joining ERA, Ms. Coons served as CEO of the Tech Council of Maryland (TCM), Maryland’s largest technology trade association with more than 500 members in Maryland, Virginia and the District of Columbia. During her four-year tenure at TCM, Ms. Coons improved the financial health of the association, streamlined governance processes and oversaw the re-branding of the organization. (more…)