In 2007, a set of guidelines came into play in the EU, putting into place rules about how advertisers could advertise, impacting marketers use of word of mouth and social media. Two key areas covered by the Unfair Commercial Practices Directive impacting social media were:
- Advertorials – where content is created about a product without disclosing that the advertiser or agent has paid for the promotion
- The advertiser or agents disguising themselves as a consumer without disclosing the relationship
This impacts a lot of fake blogs (flogs) and a lot of commenting, when companies just created personas and posted statements about products and services without disclaimers. Many of them were really bad at it, so it they were quite easy to spot after a while!
In the US, the Federal Trade Commission released changes to their guidelines about advertising practices this week and they’ve gone a little further, regarding social media commentators as potential endorsers. Reading the 81 page (pdf) Guide to Endorsements and Testimonials, here’s some key points. They may not be a legal requirement here, but there’s some good information here to be considered as best practice.
- A blogger (or other commentator in social media space, eg video, social networks etc) can be considered an endorser of a product if they are directly paid, if the value of a product or service provided is high or if they regularly receive free products from companies for review as they are considered ‘influential’; also if they are part of ‘professional’ Word of Mouth networks run by brand companies or their agencies. Although they only endorse if they say positive things about the product.
- Advertisers are responsible for statements made by endorsers, even if they are not under their control. So are the bloggers – if they make false claims off their own initiative, they can be liable.
- It is the endorsers responsibility to disclose the relationship. Advertisers need to put in place procedures to monitor such disclosures and take steps if they are not taking place
Three things that are WOM/Social Media best practice, that responsible marketers and bloggers should be following anyway – it’s all about transparency and credibility.. But too many people don’t follow them, either wilfully or because they do not know about them. With the threat of prosecution now, there’s no excuse.
