FTC to Social Media Marketers and Bloggers: Y'all Play Fair Now!

Marketers are dumping cash and gifts on bloggers. Bloggers have been hoovering up freebies. And everyone has complained about the idea of FTC regulation.

The truth: False advertising and fake endorsements have always been illegal. Just because it's social media doesn't mean you get a free pass.

Now that the FTC has clarified the rules of the game, we can all play fair and we all win.

Being honest is easy.

1. As a citizen, you're free to blog all you want, unregulated. But as soon as you take compensation, you've gone pro and you have to play by the same rules as all professional media. Very fair and reasonable.

2. As a marketer, you're free to earn all the blog coverage you want, unregulated. But as soon as you start paying for it, you are responsible for the actions of the people you pay. Very fair and reasonable.

3. We all play by the same rules now:

• The average consumer has to understand who is paying for what.
  
• Ads should look like ads, never hidden as editorial.
  
• If you're a pro, you are responsible for what you do and say.
  

4. Three guides for safe social media outreach -- these will keep you safe:

• Require disclosure and truthfulness in social media outreach.
• Monitor the conversation and correct misstatements.
• Create social media policies and training programs.

5. No more excuses

• This is the law, not a matter of opinion or debate among social media experts.
• Hidden or confusing disclosure doesn't count.
• You can't blame the agency. If you pay for it, you're responsible.
• "We can't control what bloggers say" doesn't get you off -- if you compensate them, they work for you, and you're responsible.
• "I'm a free-speaking blogger" doesn't give you a free pass from consumer protection laws. If you get compensation, you're a business now.

6. The big test: Does the average person understand the relationship? We all know that a newspaper reviewer gets samples -- no issue. We don't expect that our friend got freebies to promote on his Facebook page -- disclosure is required.

In a nutshell: You don't get a free pass just because it's social media. There's not a single new rule in the FTC announcement. Bloggers and social media marketers aren't exempt from the same rules of honesty and fairness that everyone else has to follow.

The secret to honest, authentic word of mouth: Ethics come first. Honesty, service, and respect are how we earn the support and trust of our fans.

Note: For specific guidance on creating a social media policy for your company, download the Disclosure Best Practices Toolkit from the Social Media Business Council. (Disclosure: I'm CEO.)

 

 

Follow Andy Sernovitz on Twitter: www.twitter.com/sernovitz

Comments

[MekhongKurt]

I write a blog, and I'm still somewhat confused.

So, does this mean if someone buys me a beer because he liked a story I wrote, I have to blab that to the entire Internet universe to stay right with the Lord, as defined by the FTC geeks and lawyers???

[condor101]

"Ethics come first. Honesty, service, and respect are how we earn the support and trust of our fans."

And Fox news doesn't take millions of dollars in compensation and numerous perks from advertisers, all the time while they spew lies and mis-lead the public?

Where are the disclosures on the compensation they receive for each and every broadcast opinion and story? I want to every nickel and dime they receive attributed to their specific advertiser for everything Fox broadcasts.
Fair is fair, right?
Oh, they are a corporation. So they have a different set of rules?

Well, my advice to all bloggers is to set themselves up as a small company, like an LLC. Corporations have more power than individuals. Your LLC can earn money and it doesn't have to disclose anything, because it's a private company.

[Jennine Tamm Jacob]

you have got to be kidding me...
'ads should look like ads, not editorial.'

since when do magazines to that. just open any magazine, and many pages look JUST LIKE editorial content with a tiny 10pt type ADVERTISEMENT on the top to the page. In GREY text.

this is a total double standard and you know it.

[ramblingjohnny]

Bloggers from around the world to the FTC. "Eat me!"

[Andy Sernovitz]

Emmanuel -

The point of the FTC changes is that bloggers are now being treated exactly the same as all other media.

It's always been illegal to deceive consumers and pay for endorsements without disclosure. Nothing new here.

For some reason, the social media community thought it got a free pass. That loophole is now closed.

Andy

[condor101]

A lot of shows and movies have product placements. Think Bond movies, for eample.
Where are the disclosures from those placements? It's a clear marketing tool and endorsement; It's subtle advertising.
Definitely a double standard has been imposed on bloggers.
I don't think bloggers are going to continue to exercise their free speech, in the same manner as Fox News. It's only fair.

[Emmanuel BuzzParadise]

Dear Andy, disclosure is definitely a required step to avoid deceiving consumers…as we always have requested from start, 3 years ago for the nearly 300 bloggers outreach campaigns we have deployed with BuzzParadise (http://www.buzzparadise.com) in more than 12 countries.

But why are bloggers treated with more severity than mature traditional media?

Despite what you write, offline press & TV journalists are offered outrageous gifts & travel invitations year along and I never saw any disclosure about it, not once! Don't tell me that readers expect their favorite fashion magazine to be invited 3 days in a luxury hotel in an exotic place just to test a sun cream! And don't tell these "non usual" ways of experimenting a product are not influencing journalists... It is a big part of the job of many PR agencies...like it or not.

I am 200% for disclosure but I really think that FTC and WOMMA should be asking the same from the other media to be fair… They too have a lot to take care of in terms of separating advertising from content and not deceiving consumers (and don't get me started with product placement in TV night shows or series). Consumers trust is as important whether you are a TV audience or a WOM audience.

[EndTheEcho]

Here is my question on this issue.

I have a blog, and sometimes I blog about movies I see. Some of the movies that I see, I win tickets to see in a drawing for free previews. Landmark Theaters has an e-mail list in which they let people request a chance to see a free preview, this is the mechanism by which I receive my free preview.

So my question is this, do I have to disclose that I won (not given because of my blogging) a free movie preview each time I blog in that situation?

BTW, I do blog about how to get in on deals like these deals that I take advantage of.

[classicalgeek]

FWIW (I am not a lawyer), as I understand it, if you were given the product in some random way, and not for your ability to review it, then you are not required to disclose it. So, for example, if I go to a website and legally download music for free, because the website gives it away free, then I don't have to disclose it.

Because the drawings are random, you are not receiving compensation for reviewing the movie. You are taking advantage of the opportunity to see a free movie to provide material for your blog. That's the difference. If the chain said, "We want you to review our movie on your blog, and so we're going to send you free tickets," that's where you have to disclose.

[EndTheEcho]

Glad to hear someone was thinking the same thing I was. And I am also not a lawyer :)

[Subterfuge]

How come this has never applied to FOX?