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04.14.09 FTC Sets It's Sights On Social Marketing  By Peter Da Vanzo The main reason that they killed the dating ads was that people were using copyright images as well as girls under 18 to advertise for CPA sites. It got to a point where the ad approval team couldn't police them anymore. The dieting ads were killed cause the FTC is just starting to crack down on the fake blogs that promote the diet offers. But the efforts might be too little too late, and the Federal Trade Commission (FTC) is planning to regulate online social marketing. Yes, that includes blogs, Facebook, Twitter, and other forms of social networking. In December 2008, the FTC proposed rule changes relating to endorsements, where bloggers and other site owners may be help liable for claims made about a product or service. For example, companies giving trial products to bloggers might constitute an endorsement. So flippant comments about the product or service in a social media context may come under the same scrutiny as print advertising. So, best be careful blogging or Twittering about the efficacy of that affiliate weight loss program ;) Is Regulation a Bad Thing? In this interview with Shoemoney, Seth Godin explained why he thought this regulation was good, noting that • there will always be someone operating sleazier than you are • the sleazy operators steal from everyone on the network, and increase the trust barrier that legitimate businesses must overcome If the internet was not anonymous then you wouldn't have Google AdWords ad reps stealing your keywords from your AdWords account and bidding on your trademark. Much of the advertising & affiliate driven fraud would quickly disappear. If these measures are approved, what will this mean for social media marketers?
1. Go Easy On The Snake Oil If a claim is outrageous, best be careful about repeating it. Check that any claim has studies to back it up. 2. Typical Results Not only do results have to be shown to be achievable, they must be typical. The FTC will likely investigate claims if the average consumer is likely to be mislead about results that can be achieved. This can be tricky, as most testimonials in the internet marketing space are essentially nepotistic or bought (particularly for "all-in-on" Earth shattering courses costing $1,997). Perry Marshall highlighted how hard it is to find out the "average" when your customers have little incentive to tell you something is working (and if they actually put in any effort when it is not). 3. Affiliates Beware Of Being Thrown Under A Bus The FTC are likely to focus on endorsements by third parties. Often, parent companies may be unwilling to make certain claims, but are more than happy for their affiliates to do so. This, of course, transfers risk to the affiliate. Make sure both your stories are in sync. 4. Disclose If you're being compensated for something, whether by money or materials, it's best to say so. Meanwhile, the FDA is also tightening regulation, and this will have an impact on search advertising: Continue reading this article. About the Author: Peter Da Vanzo is the founder of Search Engine Blog.com, a news resource for the search engine marketing industry. He is also a regular contributer on SEO Book. |
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