FTC Cracks Down On Word-Of-Mouth Ads

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FTC Cracks Down On Word-Of-Mouth Ads
By Mike Young on December 13, 2006

Online marketers have something new to worry about.

If you promote a product and you have a relationship with the seller of the product, you must disclose that relationship. That’s according to an FTC staff opinion issued on December 11, 2006.

This opinion covers everything from blog postings to product reviews posted on websites.

Why?

The FTC considers it to be a deceptive trade practice to provide consumers with allegedly independent information that in fact is motivated by monetary and other incentives. According to Mary K. Engle at the FTC, “if you’re being paid, you should disclose that.”

Affiliate marketers are a key group that this is going to affect. Many affiliate sites and promo e-mails to lists will need to be revised.

The goal is to let consumers know when they are not receiving unbiased information.

What does this mean to copywriters?

There is a good chance that their clients don’t know about this new FTC decision. At a minimum, copywriters should tell their clients about the disclosure requirements. It is both the ethical thing to do and a client who isn’t being pursued by the FTC is more likely to retain the copywriter for future work.

It should also be noted that that the states’ attorneys general will probably follow the FTC’s lead and pursue these types of cases as violations of each state’s consumer protection and deceptive trade practices laws.

About The Author

Business attorney Mike Young helps copywriters and marketers avoid legal pitfalls and protect their intellectual property rights. Information posted by him at this website is general in nature, should not be construed to be formal legal advice or the formation of a lawyer/client relationship. Consult an attorney to address specific legal issues. For more information, check out www.MikeYoungLaw.com.


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