Coming FTC rules pose challenge to social media marketing

By Robert Wheatley

New rules are in the works that could alter the legal landscape for agencies and clients in how they handle blogger outreach and use of third party experts and celebrities as spokespeople.

I wrote an article on this that was published today at Marketing Daily. You can read it here.

Behind all this are several note-able and well-publicized events including the fake blogging scandal involving Walmart and their PR firm, Edelman along with the accusations involving lack of transparency on the part of Whole Foods’ CEO. These events and others have prompted the FTC to consider adjusting their Guides in order to better assure transparency.

This includes disclosure when blogger are paid to promote a brand, are given free products or some other consideration. The same thinking is also extended to media interviews involving outside third-party spokespeople. The FTC’s concern there is if a viewer or listener will understand the spokesperson is being paid.

So agencies are adopting new procedures and policies that will reflect the need for clarity in the relationships between brands and various forms of media.

What’s so bad about transparency?

In today’s wired world where everything can be known or discovered and both brands and businesses live in glass houses, we’re all used to routinely finding out who’s operating behind the curtain. For the most part, the curtain stays open.

I don’t think consumers are surprised to know that celebrities are often paid to promote products they’re interested in. And in those instances when bloggers have been paid and acknowledge that in their posts, I think we find the revelation honest and refreshing.

So let’s embrace the new age of transparency and not worry about the disclosure. It’s a good thing. That said agencies must be sure their policies are in line with FTC requirements to avoid legal run-ins with the Federal policy.

What do you think?