Mom test still prevails…

By Robert Wheatley

Probably to be expected that new Guidelines on disclosure policies released by the Federal Trade Commission would lead to a rash of articles about dos, don’ts and watch-outs. Some of it accurate and of course some not. This story continues to evolve and we will continue to report on it.

Like anything new as the information continues to travel down the funnel, we reach new levels of clarity along the path, so today we invite you to inch a bit closer to accurate understanding of what this all means.

In the end, we can say with much confidence that our original article on this subject published when the Guides were still in development rings true: Just apply the mom test. Here again is the simple litmus test for good judgment on disclosure: would mom feel differently about what she reads or hears in a blog post or interview if certain facts were disclosed, whether they be material data or the matter of payment to the author?

What we know today –

• The Guides are not intended to stop or prevent brands from working with bloggers on product reviews.

• The FTC has no plans to patrol the blogosphere.

• This is voluntary compliance.

• According to Mary Engle, associate director of advertising practices for the FTC’s Bureau of Consumer Protection, “They are guidelines – not rules and regulations – they do not have the force of law. Violating the guidelines would result in an FTC investigation into deceptive practices and perhaps a complaint or court order.”

• The compliance focus will be on marketers not bloggers, hence the need to have a clear, written disclosure policy provided to bloggers that advises them to disclose receipt of any form of consideration such as free samples or payment.

The FTC claims the guidelines are there simply to “offer more clarity for consumers and marketers as social media gains importance as a marketing tool,” reports Aaron Baar in his story at Marketing Daily. In Kayleen Schaefer’s treatment on the subject today in the New York Times, Britt Aboutaleb, a New York blogger who posts for Fashionista.com sums it up, “If we love a product enough to write about it in the first place, then we’ll happily disclose where it came from, and how, before moving on to more relevant, and interesting, information.”

Dawn of a new legitimate media channel…

Perhaps more important than the guidelines themselves is the sideways cachet and legitimacy it bestows on the rise of citizen journalists. The mere fact this effort has occurred immediately conveys a halo of “real media” on those who write blogs or tweet about products.

So alongside journalists who work in media organizations that report and write and produce, we also have individuals who on their own report and write and produce. Thus today’s media strategy should no longer treat digital media outreach as some sort of bolted-on component. This is real media, with real audiences and a voice that matters.

The FTC just said so…

Your thoughts?

$11,000 (per occurrence) consequence if rules not observed

By Robert Wheatley

Over the last few months we’ve been reporting on the FTC’s efforts to refine guidelines on use of celebrity/third party spokespeople and the emergence of bloggers as a new, legitimate channel of media. A channel, by the way, that comes without the built-in rules traditional media organizations observe regarding ethical separation between PR and reporter.

Let’s start with the FTC’s hard news: if outside spokespeople participate in communications activities outside of advertising, such as a talk show interview, they need to disclose the paid relationship if they are going to talk about a brand or business. Similarly, if Bloggers (or other word-of-mouth sources) receive consideration in the form of payment or freebies in return for promoting a product, that also must be disclosed.

The FTC is saying something that only makes sense: consumers have a right to know if the mouthpiece has received payment in return for endorsement. While there may be some tawdry exceptions to this, for the most part, PR people in previous eras have not been in the business of buying favorable editorial coverage. A story has to stand on its merits. But the spokesperson thing was always a grey area in terms of how a relationship between third party and brand is defined or explained.

Now clarity exists on all fronts, and to the benefit of the consuming public — full disclosure of who is working for whom. Celebrity’s must say in an interview, I’m here today on behalf of brand x. And when Bloggers are paid to write, the deal must include requirements for disclosure of the arrangement. The FTC’s goal is to make sure all information is upfront, should any of it have an impact on the consumer’s decision to purchase something based on what they’ve heard or read.

This is a good thing!!!

One of the hallmark’s of effective public relations strategy is building credibility, and that is best served when all aspects of a relationship with media and third parties is out in the open. Honesty supports integrity and trust reigns supreme in relationships between brands and their users.

• Agencies and clients from here on in must abide by these rules of disclosure or risk punitive action

We applaud the FTC and their decision because it supports what we’ve always believed that great products, services and businesses don’t need to employ fakery or illusion to win in the marketplace. This will foster greater need for PR people to choose wisely in selecting outside spokespeople, preferably those who have genuine interest and reasonable, tangible connections to the products they endorse. Scrutiny, as always, is present these days and authenticity will be apparent to all observers. Why? Because in the new media age anything that can be known will be known.

What do you think?

Latest information on status of important regulatory changes

By Robert Wheatley

On Wednesday, in testimony before the Senate on deceptive advertising practices, the FTC took up the matter of endorsements and testimonials – key items that we anticipate will be addressed in forthcoming Guidelines that could impact social media practices. The issues at hand will matter to marketers, bloggers and paid endorsers alike.

Yesterday, New York-based Davis & Gilbert, the law firm focused in marketing and communications law, reached out to the FTC for an update.