$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?